The Ministry of Finance said it has satisfied the $200 million five-year loan obligation that was due last week at a competitive short-term rate.

Financial Secretary Donald Scott said that the option, which was taken up on June 2005, was built into the financing strategy Finance Minister Paula Cox drew up for Government's financing requirements in the 2010/11 financial year.

He said that markets had shown signs of stabilising with tighter spreads over benchmark rates in the last week, but incidences of volatility remain, adding that Government's capital financing plans would be provided when it had concluded the process.

The Royal Gazette reported only last month that Government will be talking with overseas investors in the US, the UK and Asia to gauge the market conditions as it weighs up its financing options year ahead.

The Ministry of Finance has also enlisted the help of HSBC Holdings plc. with this process as Government had hired HSBC to arrange a series of bond investor meetings in the US, Europe, Asia and on the Island, according to a person close to the sale.