Good work Mr. Shaw

[Me]

When money was cheap in the early 2000s Omar was still borrowing at high rates.

[Me]

If you have 400 million available for him to repay the original loan, then there wouldn't be a need for him to refinance it.

This is a common practice among most countries in the world, so there will not be any huge laughing at the fact that we are refinancing the loans.

[Me]

Only so much agency borrowing is available. Capital market borrowing and those loans are two different things.

[Islandman]

You are not an idiot, but maybe in need of some knowledge.

It is clearly a positive development when you can reduce your financing costs and give yourself some improvement in cash flow. It is not borrowing MORE money, it is reducing the cost of money borrowed already.

If for some reason you don't want to give the MOF any credit then you can try Karls argument that even a caveman (but not Omar) could have done it.

[Don1]

Maybe so... I have not done an analysis of rates we got on intl loans in relation to our sovereign credit profile at that time...have you?

In any case I am not interested in constantly keeping score on Shaw vs Omar. I have already stated what I think of Omar's tenure... many others like to deal with the incessant scoring and indulging in their favourite politicians..

not much interest here

[Me]

Our credit profile was stronger at the time. Since the recession hit most nations have been downgraded a couple notches. Additionally, the sovereign debt market (not loan market) has been less liquid than prior to 2008 and experienced more volatility.

[Don1]

Our credit profile was stronger at the time. Since the recession hit most nations have been downgraded a couple notches. Additionally, the sovereign debt market (not loan market) has been less liquid than prior to 2008 and experienced more volatility.

mebbe so... but you have not answered the question I posed.

To be sure that the conclusion you reached i.e. that "cheaper" loans than the ones negotiated were available to Davies ... one would have to go back in time and compare the rates/terms we got....say with sovereign instruments with a similar profile
Otherwise it's just speculation...although you may be correct.. I don't know.

What I would agree with however is that Davies' demand management/high interest rate policy was disastrous ...the guy doesn't qualify to be a finance spokesman imho... his credibility is low and he should be retired in the public interest

The fact that the PNP still uses him speaks volumes for that party and its leadership

[Reggaedoc]

Dedt is debt. It has to be repaid. Kicking the can down the road to strangle the next several generations of Jamaicans with debt is not sound fiscal policy, in my opinion. How about reducing waste, shrinking a bloated public sector which just might have too many political activists on the payroll doing nothing, restructing the tax system so that the haberdashers pay their fair share?. Its called cutting spending and increasing revenue my friend. That is the only way to get out of debt. Of course youm have to increase your expoprts too. You cant borrow yourself out of debt, no matter how cheap the money is. The interest rate in thwe USA is almost zero, and people are clamoring for less borrowing.

[Muadib]

Sounds like you are supporter of Audley Shaw.

You and him deh pon di same page...

Careful Karl nuh hear yuh.. him will seh yuh trying to bring back the 80's...

[Me]

Dedt is debt. It has to be repaid. Kicking the can down the road to strangle the next several generations of Jamaicans with debt is not sound fiscal policy, in my opinion. How about reducing waste, shrinking a bloated public sector which just might have too many political activists on the payroll doing nothing, restructing the tax system so that the haberdashers pay their fair share?. Its called cutting spending and increasing revenue my friend. That is the only way to get out of debt. Of course youm have to increase your expoprts too. You cant borrow yourself out of debt, no matter how cheap the money is. The interest rate in thwe USA is almost zero, and people are clamoring for less borrowing.

All those other things have to be done. That doesn't mean that replacing the more expensive debt (which you can't afford to repay in full at this moment), with cheaper debt is not a good thing. When those other things are mentioned and growth and revenue collection increase occur, then a nation can begin to reduce its leverage.

[Assasin]

And how do you suggest we go from borrowing billions to borrowing 0?

[Islandman]

The US talking heads can "clamor" all they want, in the next few weeks they will have to raise thier debt ceiling and borrow more or face financial disaster.

Sometimes you have to adjust your existing debt in order to be in a position increase revenue, or go out of business.


There are short term and long term objectives. If you get wiped out in the short term then the long term will not matter, regardless of how impressive the plans are.

[Willi]

Ahhh,

The new debt is just to replace the old debt. What you prescribe is great but takes time. The maturing debt needs to be repaid NOW!

Dont confuse liquidity with restructuring.