Who said gas station operators cyaan raise money??

[Don1]

... Assassin.... happy days are here again!! Your cheap loans are in the bag!!

Shaw Says Govt. Accesses Nearly US$1 Billion in Cheap Loans Since Assuming Office

MONTEGO BAY (JIS):
Friday, January 30, 2009


Minister of Finance and the Public Service, Audley Shaw, has said that although Jamaica is categorised as a heavily indebted, middle income country, it has been able to access nearly US$1 billion in funding, at low interest rates, from multilateral lending agencies since October 2007.
Mr. Shaw made the declaration on Wednesday (January 28), while addressing the Fourth Regional Conference on Investments and Capital Markets, at the Rose Hall Resort and Country Club, Montego Bay, St. James.
He said that it has been an established policy of the current Government to aggressively expand its engagement with the multilateral institutions, including the Inter-American Development Bank (IDB), the World Bank and the Caribbean Development Bank (CDB), and that the policy has been followed despite criticisms from some quarters.
"I am pleased to tell you that to the end of this fiscal year, we would have had approvals totalling US$951 million from the IDB, the World Bank and the Caribbean Development Bank. Almost one billion dollars (United States) in approved loans from the multilaterals since getting into office in September of 2007", he announced.
Minister Shaw described the level of loan approval secured as a "remarkable achievement" by any standard of measurement or evaluation, unprecedented in Jamaican history.
He explained that the latest US$100 million loan agreement, signed between Jamaica and the World Bank, was at a 1.8 per cent interest rate with a five-year moratorium on payment. "We have demonstrated that we can access the money," he stated.
He said that the US$100 million will be disbursed into the treasury some time this week.
Mr. Shaw said there is no shortage of foreign exchange in the island and the country is on track to fulfill its obligations on the 200 million Eurobond that matures in February. He said that the country's demand for external financing should be considerably reduced for the next two fiscal years.
"In addition, the Bank of Jamaica was very responsive to the implosion and the margin calls that erupted as a result of the international situation. We have put aside $300 million, from the Bank of Jamaica, to assist the securities dealers, of which about $170 million was taken up. We have also negotiated successfully with the IDB, a US$300 million liquidity support programme for the commercial banks, for un-lending to the productive sector, to mitigate the problems of trade finance and other difficulties that we have had", he said.
"We have also channelled funds into the Export/Import (EXIM) Bank, to assist in that regard, in terms of manufacturers whose lines of credit have dried up", he stated.
The Fourth Regional Conference on Investments and Capital Markets ends on January 30. It is being staged by the Jamaica Stock Exchange under the theme, "Competition or Collaboration."

[Assasin]

Well I hope them make good use of it. 1 billion at under 3% fi five years.

I hope them nuh run wid it but make worthwhile investment in the Jamaican people.

[Hortical]

And we sink deeper in debt. How much a we budget dedicated to financing debt, 60%? The fact of the matter is that tax revenues are inadequate to support government expenditures.

[Assasin]

Well we have to grow our GDP and if the money borrowed is used to pay back our debt at 5% instead of 10%, is properly accounted for and not waste, and is used to grow local production then it will definately work.

The problem is, Can our leaders do that?

[Hortical]

Even when the world economy was booming years ago we were not growing our GDP at a reasonable rate. It will be more difficult these days in 2009 and beyond.

[Don1]

Well we have to grow our GDP and if the money borrowed is used to pay back our debt at 5% instead of 10%, is properly accounted for and not waste, and is used to grow local production then it will definately work.

The problem is, Can our leaders do that?

When you say this will "work".... what exactly does "work" mean? Will we be poised then for economic takeoff? No.

Sorry Asassin... this money will largely be used by Govt. for housekeeping and debt servicing... not growing the economy.
Businesses that access these funds will primarily use it to import foreign goods for trading and merchandising.... ie... more housekeeping.
You need to understand how the economy works.... or rather doesn't work.
Our problems are structural... and primarily social. The bad economics are a mere symptom of horrible social relations and conditions. Jamaica has this thing backwards... which is why we don't get the solutions right.... and until we do our economic fixes will not amount to much.. except for the privileged few.


Fortunately these cut rate loans will help somewhat in cash flow but unfortunately they will not spark a really significant change in our prospects.

For that significant change we need radical, out of the box solutions. Currently our political leadership on both sides of the divide are too bankrupt for that to occur.

[Muadib]

Some are more bankrupt than others.. inability to discern this is not solely the fault of the politicians..

[Assasin]

if you notice my last sentence was

"The problem is, Can our leaders do that?"

This is only a first step and if we are up to the challenge we can do it but I am not sure we will.

I know how a normal economy works and this low interest would spur growth. If you notice I am an advocate not for importation but for local production as it is part of the puzzle if we want to go forward, we have to grow our GDP. WITHOUT GROWTH in our gross domestic product we are doomed..

We can't continue to have this huge balance of trade and budget deficit. What these loans are, are short term relief for us to do the right things. Even in hard times it means that we should pay more attention to local production and consumption and exporting of goods and services.

[Don1]

Some are more bankrupt than others.. inability to discern this is not solely the fault of the politicians..

You...as an operative (minor) of one of the warring tribes... are part of the problem... not a part of the solution.... maybe one day however you can be a part of the solution.

Some are more bankrupt?? That sounds like one man can be "more dead" than another.

You are very amusing.

[Don1]

if you notice my last sentence was

"The problem is, Can our leaders do that?"

This is only a first step and if we are up to the challenge we can do it but I am not sure we will.

I know how a normal economy works and this low interest would spur growth. If you notice I am an advocate not for importation but for local production as it is part of the puzzle if we want to go forward, we have to grow our GDP. WITHOUT GROWTH in our gross domestic product we are doomed..

We can't continue to have this huge balance of trade and budget deficit. What these loans are, are short term relief for us to do the right things. Even in hard times it means that we should pay more attention to local production and consumption and exporting of goods and services.

I agree with all you say but that's not my point.

My point is that all these admirable economic fixes, while necessary, will not change our fundamental circumstances.

What is most needed is fundamental change.... but bigger heads don't get it... so why should you?

[Muadib]

Incorrect.. you cannot have different degrees of death.. you can have different degrees of bankruptcy..

You can choose to sit on the sidelines in which case you play no part at all or you can determine the best of two evils..

Don't stay on the fence too long, too much pressure in a certain area can be a health risk...

[Don1]

Incorrect.. you cannot have different degrees of death.. you can have different degrees of bankruptcy..

You can choose to sit on the sidelines in which case you play no part at all or you can determine the best of two evils..

Don't stay on the fence too long, too much pressure in a certain area can be a health risk...

I think I'll leave you to your party... which you now admit is bankrupt of ideas. LOL!! ... But "less bankrupt" than the other tribe. Let me guess... the PNP is in Chapter 11 and the JLP is in Chapter 7 perhaps?

Soldier on JLP warrior... the road is tough but... keep hope alive!!!