Debt profile & recent economic performance in perspective

[Me]

Don't get me wrong, we are certainly not on the road to recovery simply by having 10 year 8% debt, but he is doing better than what Omar was doing.

[Don1]

do you even know what he is referring to? wen yuh tap talk fooliniss like yuh "expect growth" because more cruise ship ah dock among odda tings yuh cyan acquire some credibility in economic mattas

yuh need some more seasoning.

[Don1]

sorry...But I'm not in the habit of taking anyone's opinion as my own...at least not so readily

[Assasin]

Did you read what the Governor of the bank of JA said two days after?

Pretty much same thing. Gwaan show your ignorance or hate.

[Assasin]

you have to start somewhere.
Next time hopefully it will be 6%.

the fact is they laugh Shaw to scorn when he said we should be borrowing at lower rates. How can these same people who supported Omar that it is impossible to borrow at lower rates say a thing?

[Assasin]

You just realise this? Now you see how FINSAC at 50% interest rate affected people business?

[Don1]

I don't believe things are that simple...investors look at country rating and also what's happening in the economy...yes?

With Jamaica having US$2B++ or more in FX debt inflows in the last couple of years ... in fact even more than was required so that they are now discussing what to do with the cushion of un-needed surplus debt... and with the economy essentially under IMF control...the risk of default is low to nil... so it seems to me that makes Jamaica very bankable to international capital.... so I don't see the rate on the bond as any big deal

I will agree that Shaw is doing well in the past 12 months or so especially with the domestic debt restructuring...the first couple of years he was at sea

[Don1]

hate? LOL...juss blunt talk...

don't be disturbed...is nat personal..ah juss suh mi stay

[Me]

That is simplified, but that is how it works.

Your story telling and selling is great (maybe they could use you on the road show), but at the end of the day debt is priced based on credit rating. He has a lower rating to work with and achieved the same spread.

[Don1]

Investors in a country's debt don't look at the macro economic and even socio-political situation? That's news to me.

Whatever the bond is priced on... the rate garnered is no cause for excitement as the premium is still very high even though Jamaica has purchased some stability in the past 2 years by adding massively to its external debt load (maybe 30% to 40% increase) at the current low market rates

I think the Gleaner editorial on the matter is balanced

that's my point..

[Willi]

Its a rollover, so any reduction for any reason is positive.

[Don1]

yes refinancing at a lower rate is good...but that's not the point at debate

people found the rate to be remarkable...It is not..given the low rates in the market and the still high premium the instrument attracted

[Willi]

Its a good rate, but even if it was great, so what? Debt rollover keeps us in the game, it does not significantly advance our cause.

We need action.

Soshal contrak, plans, goodwill, execution and patience married to a good dose or realistic expectation.

[Don1]

the rate issue was just a technical point...minutiae

[Willi]

Our peeps have diagnosed problems to point of nausea.

How we gwine wuk togaddah to fix dem and deliver prosperity in a reasonable timeframe???