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The Jamaica Securities Dealers Association (JSDA) and the Jamaica Bankers Association (JBA) are supporting the Government on its recent decision to implement the Jamaica Debt Exchange programme which was announced last night by Prime Minister Bruce Golding.
Under the debt exchange programme, holders of the $700 billion in domestic government bonds are being invited to trade them in for new bonds that will carry lower interest rates and extended maturities.
Both associations have commended the Golding administration on what they say is its intention to take the hard decisions necessary toward a realistic and sustainable medium-term economic programme.
The programme is expected to ultimately lead to increased economic growth and improved well-being for all Jamaicans.
The security dealers and bankers associations say they recognize that a well designed Liability Management Programme needs to be part of a medium- term economic plan, together with effective tax reform, fiscal consolidation and increased transparency in fiscal management.
They also look forward to the final details of the Debt Exchange programme, which will enable them to respond within the timeframes necessary to help the Government secure the necessary IMF Stand-by Agreement.
However, Financial Analyst Ann Shirley is expressing dissatisfaction with the level of information contained in the Prime Minister’s address on the government’s debt management programme.
Ms. Shirley said while Mr. Golding’s speech included critical information it was lacking on some points.
The debt exchange programme is expected to save $40 billion in the next fiscal year.
Ms. Shirley wants to know what the consequences are if the government fails to meet its targets.
She had also hoped that the Prime Minister would have provided more details on how the government plans to address the issue of inflation.
http://www.go-jamaica.com/news/read_...e.php?id=16007
Under the debt exchange programme, holders of the $700 billion in domestic government bonds are being invited to trade them in for new bonds that will carry lower interest rates and extended maturities.
Both associations have commended the Golding administration on what they say is its intention to take the hard decisions necessary toward a realistic and sustainable medium-term economic programme.
The programme is expected to ultimately lead to increased economic growth and improved well-being for all Jamaicans.
The security dealers and bankers associations say they recognize that a well designed Liability Management Programme needs to be part of a medium- term economic plan, together with effective tax reform, fiscal consolidation and increased transparency in fiscal management.
They also look forward to the final details of the Debt Exchange programme, which will enable them to respond within the timeframes necessary to help the Government secure the necessary IMF Stand-by Agreement.
However, Financial Analyst Ann Shirley is expressing dissatisfaction with the level of information contained in the Prime Minister’s address on the government’s debt management programme.
Ms. Shirley said while Mr. Golding’s speech included critical information it was lacking on some points.
The debt exchange programme is expected to save $40 billion in the next fiscal year.
Ms. Shirley wants to know what the consequences are if the government fails to meet its targets.
She had also hoped that the Prime Minister would have provided more details on how the government plans to address the issue of inflation.
http://www.go-jamaica.com/news/read_...e.php?id=16007
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