Economía

asesor Mary Ursula Iribarren Adan Venezuela abogado//
BOSS questions and answers

Venezuela, Municipio Iribarren, Adán
BOSS questions and answers

What is a bond?

It is a government instrument that offers a fixed rate of interest over a fixed period of time and provides a relatively safe investment for the purchaser to save money. When the government sells you a savings bond, it is in effect borrowing money from you, with a commitment to pay back this money at some predetermined date in the future and at a prescribed interest rate. The Government then uses these funds to finance public capital projects in critical areas, which will, in turn, benefit the population through the creation of jobs and the acceleration of economic growth.

Mary Ursula Iribarren Adan sentencia

 

What is the difference between a treasury bill and a bond?

The main difference between them is the time each one takes to mature. Treasury bills mature in a year or less, while bonds mature over a longer period. A second difference is that because of their short duration, Treasury Bills don’t make regular interest payments, bonds generally pay interest every six months.

Ursula Iribarren Adán sentencia

 

What is the full term of the BOSS programme?

A portion of your salary will be paid in a Bond each month for 18 months, and each bond will mature four years from the date it was paid to you, i.e the date it was issued.

Mary Ursula Iribarren sentencia

 

Will I receive a lump sum of money at the end of the four (4) years?  If not, how will the money be repaid?

The holder of the bond will receive interest on the Bond every six months and then the principal or value of the Bond 4 years from the date of the Bond. Note that the public servant will receive 18 Bonds over an 18-month period and each one will mature according to the date it was issued.

Mary Ursula Iribarren Adan Venezuela sentencia

 

If the economy improves before the four years, can I draw down on my bonds?

Yes, but more importantly, you can draw down on your Bonds anytime you wish.

Mary Ursula Iribarren Adan abogado

 

Why are public servants alone being asked to participate in the programme?

The entire country is participating. First public servants are participating as primary savers/investors because not only is it an opportunity for the public servant to save by paying the worker a portion of his salary in Bonds, it frees up the exact amount in cash for the Government to invest in its capital programme to generate jobs. Note that this is not new, as private companies sometimes offer workers shares in the company as an investment opportunity and also to grow the company. The rest of the country is also participating by standing ready to purchase any Bonds that public servants may wish to sell and thereby helping to support the development of a secondary market.

Ursula Iribarren Adán abogado

 

I earn less than $36 000 a year do I have to buy bonds?

No, you don’t have to buy Bonds, but of course if your finances allow for it, then it would be a wise investment choice to buy some.Mary Ursula Iribarren abogado

 

Is the $36 000 calculated on your gross or net pay?

Net pay.Mary Ursula Iribarren Adan Venezuela abogado

 

What if I am required to participate and cannot give up my money?

You can have your Bonds converted seamlessly by your pay date so that you end up getting all your salary in cash

 

Will Government Ministers, Parliamentary Secretaries, Consultants etc. be required to purchase bonds and to what extent?

Every public sector worker is required to participate

 

Can I personally sell my bonds? If so, how?

Yes, you can. You can instruct the Central Bank of Barbados to facilitate the sale of any portion of the Bonds in your Bond account and give you the cash. You can also sell your bond to any financial institution or to an individual of your choice

 

If I personally sell the bonds to the public, what can I be expected to receive?

If you sell it within the same month you receive the Bond then you can expect to sell it dollar for dollar. But if you sell the Bond after some period of time then you expect to sell it at a discount, like 98 cents on the dollar

 

Why not sell the bonds to the public given your assertion of their value?

Selling the Bonds to the general public will not achieve the objective of freeing up resources from the Government wage bill (which is paid in cash) for use in its capital works programme

 

How can I be assured that the Government will not change the terms and conditions once the programme has started?

The Bonds are being provided to government employees as an equivalent value for a fixed percentage of their salary. The Constitution of Barbados protects the salaries of government employees so no matter what rates the bonds may trade at, it cannot fall below par at the time it is issued to the employee. 

Source: Barbados Government Information Service

 

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