NOW is the right time for Guernsey to introduce premium bonds, according to the Association of Guernsey Banks chairman.

Ken Gibbs (pictured) said the association had yet to discuss the proposals but he believed that the scheme could provide government with vital funds at the right time.

‘The States will be looking at multiple methods of funding,’ [for capital projects] he said.

‘My guess will be that they will use a number of measures rather than one, a combination of savings schemes and States bonds, etc.’

‘For the States it would be good because interest rates are extremely low – it wouldn’t cost that much in their tax take.’

Guernsey Post announced yesterday that it would ask the States to back new savings schemes similar to the UK’s National Savings and Investments and to work with it to offer islanders local premium bonds.

Mr Gibbs said such a scheme could help Guernsey make use of its Triple-A credit rating. ‘It would be a very good idea for individuals to invest their money here and keep it safe.’