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Wednesday, February 11, 2009
Scotiabank Jamaica yesterday said it has loaned the Government US$100 million to support the national budget and assist the administration fund the euro200 million bond repayment due today.
"Scotiabank has a long history of supporting the country and the people of Jamaica, especially in difficult times," said Bruce Bowen, the bank's president and CEO in a statement. "With the current turmoil in global financial markets, regional governments have found the global bond market closed. This loan is intended to provide bridge financing until further multilateral loans can be finalised or global capital markets reopen."
Scotia's announcement came as jitters increased in the market over the continued devaluation of the Jamaican dollar and the effect it would have on the Government's ability to honour its obligations to investors.
Bowen said that Scotia has been the Government's banker for over 100 years, and the loan at this time is a demonstration of confidence in and commitment to the country.
Scotia said the loan supports the Government's attempts to reduce its exposure to third currencies and to raise as much debt as it can from low-cost multilateral lending sources.
Wayne Hewitt, Scotiabank's vice-president of Corporate & Commercial Banking, noted that the bank provided a similar facility in the past when the Government faced difficult external financial markets.
"In 2003, Scotiabank's US$100 million loan to the country confirmed our confidence in the Government at a very challenging time," he said. "We believe that today's announcement will similarly provide confidence to the local and international financial community that a leading global bank has provided a US$100-million loan to support the Government of Jamaica's fiscal plans."
Hewitt said the Government and the Bank of Jamaica were doing a good job managing the fiscal and monetary challenges facing the country at this time of unprecedented volatility globally.
"At times like these," he added, "it is critical that senior decision-makers in government, business and civil society show leadership by working together to build confidence in the business community and general public."
http://www.jamaicaobserver.com/news/..._US_____M_.asp
Scotiabank Jamaica yesterday said it has loaned the Government US$100 million to support the national budget and assist the administration fund the euro200 million bond repayment due today.
"Scotiabank has a long history of supporting the country and the people of Jamaica, especially in difficult times," said Bruce Bowen, the bank's president and CEO in a statement. "With the current turmoil in global financial markets, regional governments have found the global bond market closed. This loan is intended to provide bridge financing until further multilateral loans can be finalised or global capital markets reopen."
Scotia's announcement came as jitters increased in the market over the continued devaluation of the Jamaican dollar and the effect it would have on the Government's ability to honour its obligations to investors.
Bowen said that Scotia has been the Government's banker for over 100 years, and the loan at this time is a demonstration of confidence in and commitment to the country.
Scotia said the loan supports the Government's attempts to reduce its exposure to third currencies and to raise as much debt as it can from low-cost multilateral lending sources.
Wayne Hewitt, Scotiabank's vice-president of Corporate & Commercial Banking, noted that the bank provided a similar facility in the past when the Government faced difficult external financial markets.
"In 2003, Scotiabank's US$100 million loan to the country confirmed our confidence in the Government at a very challenging time," he said. "We believe that today's announcement will similarly provide confidence to the local and international financial community that a leading global bank has provided a US$100-million loan to support the Government of Jamaica's fiscal plans."
Hewitt said the Government and the Bank of Jamaica were doing a good job managing the fiscal and monetary challenges facing the country at this time of unprecedented volatility globally.
"At times like these," he added, "it is critical that senior decision-makers in government, business and civil society show leadership by working together to build confidence in the business community and general public."
http://www.jamaicaobserver.com/news/..._US_____M_.asp