An investigation into investors' satisfaction with the issuance and administration of government debt securities: A case study of the Bank of Namibia
Loading...
Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Namibia
Abstract
The study investigated the investor's satisfactions with the issuance and administration
of government debt securities in Bank of Namibia. A mixed-method approach was
used in this study. The primary data was gathered through structured questionnaires,
administered to portfolio managers, treasurers, directors, dealers, economists and
Accountants from four economic sectors. Secondary data from related literature and
official document reviews such us Debt Management Strategy and the Guideline for
Effective Debt Management from the Ministry of Finance, IMF and the World Bank
were used in gathering the necessary information for this study. Quantitative analysis
of the data collected by structured questionnaires showed that overall investor's
respondent felt that the government debt instrument issuance and administration to be
effective, very important weaknesses in the process need to be considered very
seriously. The noted concerns are the legal framework that needs to recognize the
electronic trading platfom1 and allow the incorporation of the bonds into the book entry
system. The need for the automation of the auctioning system and the method of
submission of bids for tender and the linkage of Book Entry System to a settlement
system to achieve Delivery V s Payment in markets for government debt securities.
The use of structured questionnaires for data collection is a significant departure from
the methods used in other studies in this area. The rich and contextual data gathered
from the structured questionnaires justified this choice and contributed to the
identification of issues not mentioned in the literature. Past studies have concluded that
customer satisfaction is very important. Debt securities are issued through auction at
the Bank of Namibia (the government fiscal agent), as per the government calendar
and the borrowing plan. This is done by issuing debt securities/instruments such as
treasury bills and bonds to the public. This is done with a purpose to raise funds to
finance its budget deficit. As the monetary authority in Namibia, the BoN issues,
redeems, and carries out all the administration related to the debt securities on behalf
of the government. This study sought investors' views on the debt management
operation. Therefore, Bank of Namibia should always strive to ensure that investors
are very satisfied with the issuance and administration for government debt securities
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (Management Strategy)
Keywords
Government debt securities, Bank of Namibia, Investor's satisfactions, University of Namibia, Namibia