I have a suggestion that could help the Government of Barbados raise capital (or consolidate loans) at a very low interest rate (e.g. 1.4% per annum), from the people of Barbados (and perhaps regionally or even globally).

In the UK (and in some countries) that there is a Premium Bond Scheme.  This is a “lottery bond”, issued by the UK Government’s  National Savings and Investments agency. 

Originally it was started by Harold Macmillan in 1956 as a way to control inflation and to encourage people to save.  Offered to the public, instead of receiving interest for their investment they have a chance every month to win cash prizes, with the top prize being a substantial amount of money (1 Million GBP - two prizes each month).

https://en.wikipedia.org/wiki/Premium_Bond

Why not start a National Savings scheme here in Barbados?  Barbadians  love the lottery, and even winning small prizes works out better than having money sitting doing nothing in a bank.  The best thing is that each month the people doing it (the bond holders) don’t lose their money – if they have $5000 invested they have 5000 chances (every single month) of winning small prizes, and the top prize.  If they need the money back they can take it out at any time.

The chance of winning is higher, the more you invest.  Each 1 GBP bond has a equal chance of winning a prize.  Maximum investment is GBP50,000.  Prizes are tax free.

I know that a local lottery bond here wouldn’t have enough investment to be able to pay out $1 Million initally, but the big prize could start with $100,000 and grow from there, with a lot of smaller prizes.  If opened up regionally/internationally it could possibly be a way for Barbados to earn foreign exchange.

Here is the link to the UK website in case you want to check it out: 

https://www.nsandi.com/premium-bonds

Just a suggestion – what do you think?

Yours faithfully,

Bart Sims

Business Development Manager, Vending Plus (Barbados) Inc.