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JP Morgan upgrades Jca's external debt
Wednesday, May 13, 2009
Bank broker JP Morgan has upgraded its rating of Jamaica's external debt from "underweight" to "neutral", citing recent economic developments and positive signals being sent by the Bruce Golding administration.
In its Central America and Caribbean daily report, JP Morgan pointed to information from the Government that it was in "exploratory" talks with the International Monetary Fund (IMF) to secure funding, if Jamaica's balance of payments situation deteriorated further.
"Our interpretation of the official comments is that Jamaica is planning to sign a Stand-By Arrangement with the Fund...As we noted last week, we view the Government's willingness to talk to the IMF as a positive development, given the persistent deterioration in Jamaica's macro fundamentals. A renewed relationship with the Fund may even be politically feasible given the now more relaxed conditionality attached with a Fund programme."
Jamaica has not had a formal financial arrangement with the IMF since 1996 and has been under intensified Fund surveillance since 2004.
JP Morgan said it was also worth highlighting some positive developments on the economic front in recent weeks, noting that: tourist arrivals during the winter season (Dec-Apr) were up 2% year-on-year; foreign exchange reserves rose for a second consecutive month in April (to US$1.6 billion) after dropping 30% since last August and the Jamaican dollar has stabilised around the J$88-89 per USD after depreciating 23% between October and March.
Wednesday, May 13, 2009
Bank broker JP Morgan has upgraded its rating of Jamaica's external debt from "underweight" to "neutral", citing recent economic developments and positive signals being sent by the Bruce Golding administration.
In its Central America and Caribbean daily report, JP Morgan pointed to information from the Government that it was in "exploratory" talks with the International Monetary Fund (IMF) to secure funding, if Jamaica's balance of payments situation deteriorated further.
"Our interpretation of the official comments is that Jamaica is planning to sign a Stand-By Arrangement with the Fund...As we noted last week, we view the Government's willingness to talk to the IMF as a positive development, given the persistent deterioration in Jamaica's macro fundamentals. A renewed relationship with the Fund may even be politically feasible given the now more relaxed conditionality attached with a Fund programme."
Jamaica has not had a formal financial arrangement with the IMF since 1996 and has been under intensified Fund surveillance since 2004.
JP Morgan said it was also worth highlighting some positive developments on the economic front in recent weeks, noting that: tourist arrivals during the winter season (Dec-Apr) were up 2% year-on-year; foreign exchange reserves rose for a second consecutive month in April (to US$1.6 billion) after dropping 30% since last August and the Jamaican dollar has stabilised around the J$88-89 per USD after depreciating 23% between October and March.
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