Refinancing of Port Authority debt sparks debate

[Lazie]

The government's bid to refinance the debt of the Port Authority sparked contentious debate in parliament on Wednesday.
Words were thrown back and forth across the flood of the Chamber at Gordon House as the opposition raised strong objection to a debt servicing loan of US$100 million, under terms that were far from clear.
It was Minister of Transport and Works Mike Henry, speaking on behalf of Finance Minister Audley Shaw, who placed on the table a deal between an un-named company at an undisclosed lending rate.

This was met with great objection from the Opposition.
First Opposition Member Peter Bunting, who objected to such a deal, raised that the issue of interest rates were indicative, which means they were not fixed and were not known at the point of going into such an agreement with this unnamed lender.

Opposition member Peter Phillips urged government members not to go ahead with a deal he described as "puss in bag".
The issue was debated with the Opposition pointing out the absurdity of such an agreement but in the end the majority ruled and the move was approved.

[Lazie]

US$100m loan to Port Authority to refinance existing loans

Details have emerged on the US$100 million Government guarantee being sought by the Port Authority of Jamaica.
The guarantee was the source of much debate during Wednesday's meeting of Parliament.

According to a Ministry Paper tabled by Transport Minister Mike Henry, the US$100 million will be used to refinance a portion of the Port Authority's existing loan portfolio.
It also revealed that the Government has agreed to amend the terms of two loans amounting to US$75 million which are outstanding to the Bank of Nova Scotia.

It is reported that this has become necessary due in part to the financing arrangements for the development of Kingston Container Terminal being shorter than the life of the assets.