Tweet
Opposition Spokesman on Finance, Planning, Growth and Economic Development, Audley Shaw today said that the Government and in particular the Minister of Finance and Planning are squandering the significant gains in economic stability left by the previous administration of the Jamaica Labour Party.
Citing a series of recent negative indicators, Mr Shaw said that these reveal that the Government is losing control of the economy and is failing in its duty to inspire confidence among critical stakeholders, which is now leading to a reversal of important macroeconomic benchmarks.
Mr Shaw cited among the negative signs the decline in the Net International Reserves (NIR) which now stands at us$1.54 Billion; continuing slippage in the exchange rate which now exceeds the J$89.00 to us$1.00 mark; prediction by the BOJ of a sharp increase in the inflation rate into double digits; and a decline in the economy in the first quarter of this calendar year.
"With all these negative trends in the economy, the Minister of Finance, while being unable to provide any firm timelines for a new IMF Agreement, has declared that the days of low interest rate loans are coming to an end, clearly signaling his apparent inability to raise lower cost loans on the private international capital markets," Mr Shaw said.
He said that this combination of negative trends in the economy is driving down confidence in the investment community, and which has now started a flight to US dollar instruments in search of stability.
Mr Shaw said that on his return from his overseas visit this week, Minister Phillips, supported by his Ministry's Army of twelve Advisers, consultants and assistants, needs to issue a fulsome statement setting out the following:
1. Provide detailed clarity on the progress of negotiations with the IMF toward a new Agreement.
2. Urgently complete the Structural Benchmark Reforms (Tax, Pension and Public Sector Wage Settlements) to secure a new IMF Agreement.
3. Complete the sale of Clarendon Alumina Productions (CAP).
4. Negotiate with the World Bank, the IDB, the CDB and the European Union, to secure funding even in the absence of an IMF Agreement.
5. State clearly his plans to raise funds on the international capital market and at what rate of interest, and
6. Explain the impact of recent concessions made in relation to the Tax Package, on the revenue targets.
Mr Shaw said these are the minimum requirements to restore confidence and begin the process of reversing the negative trends in the economy.
Citing a series of recent negative indicators, Mr Shaw said that these reveal that the Government is losing control of the economy and is failing in its duty to inspire confidence among critical stakeholders, which is now leading to a reversal of important macroeconomic benchmarks.
Mr Shaw cited among the negative signs the decline in the Net International Reserves (NIR) which now stands at us$1.54 Billion; continuing slippage in the exchange rate which now exceeds the J$89.00 to us$1.00 mark; prediction by the BOJ of a sharp increase in the inflation rate into double digits; and a decline in the economy in the first quarter of this calendar year.
"With all these negative trends in the economy, the Minister of Finance, while being unable to provide any firm timelines for a new IMF Agreement, has declared that the days of low interest rate loans are coming to an end, clearly signaling his apparent inability to raise lower cost loans on the private international capital markets," Mr Shaw said.
He said that this combination of negative trends in the economy is driving down confidence in the investment community, and which has now started a flight to US dollar instruments in search of stability.
Mr Shaw said that on his return from his overseas visit this week, Minister Phillips, supported by his Ministry's Army of twelve Advisers, consultants and assistants, needs to issue a fulsome statement setting out the following:
1. Provide detailed clarity on the progress of negotiations with the IMF toward a new Agreement.
2. Urgently complete the Structural Benchmark Reforms (Tax, Pension and Public Sector Wage Settlements) to secure a new IMF Agreement.
3. Complete the sale of Clarendon Alumina Productions (CAP).
4. Negotiate with the World Bank, the IDB, the CDB and the European Union, to secure funding even in the absence of an IMF Agreement.
5. State clearly his plans to raise funds on the international capital market and at what rate of interest, and
6. Explain the impact of recent concessions made in relation to the Tax Package, on the revenue targets.
Mr Shaw said these are the minimum requirements to restore confidence and begin the process of reversing the negative trends in the economy.
Comment