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Monday, 09 February 2009
The Government will on Monday fork out US$250 million or more than JA$20 billion to cover a maturing euro bond.
The local and international financial markets will be closely watching developments regarding the payment in the wake of the challenges facing Jamaica's foreign currency market.
Financial Analyst David Wan said the repayment of the bond has serious implications for the exchange rate.
"And it's that US$250 million. They have to pay this out there is no roll over into a new bond; they have to find the cash to do it,"
"So it is possible that the BOJ and the authorities have been trying to get some hard currency to pay out this bond even though they have $1.7 billion in reserves, if they draw down the reserves too much, by $200 million for argument's sake, it is just a rating downgrade, which would be bad," said Mr. Wan.
In a recent interview with RJR News former Finance Minister Dr. Davies said the administration will have to use a portion of the loans it recently received from the IDB to pay the debt.
http://www.radiojamaica.com/content/view/15425/52/
The Government will on Monday fork out US$250 million or more than JA$20 billion to cover a maturing euro bond.
The local and international financial markets will be closely watching developments regarding the payment in the wake of the challenges facing Jamaica's foreign currency market.
Financial Analyst David Wan said the repayment of the bond has serious implications for the exchange rate.
"And it's that US$250 million. They have to pay this out there is no roll over into a new bond; they have to find the cash to do it,"
"So it is possible that the BOJ and the authorities have been trying to get some hard currency to pay out this bond even though they have $1.7 billion in reserves, if they draw down the reserves too much, by $200 million for argument's sake, it is just a rating downgrade, which would be bad," said Mr. Wan.
In a recent interview with RJR News former Finance Minister Dr. Davies said the administration will have to use a portion of the loans it recently received from the IDB to pay the debt.
http://www.radiojamaica.com/content/view/15425/52/