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Segment of Kris Astaphan's interview.... To me, this is the kind of discussion we should be having, not the tit for tat throw words we have seen where one side pretends that it all the fault of the other. I repeat, the blame is on all sides, as I dont think the politicians are above board in what they say, and the waggonist private sectors and the commentators are all backing their "sides" to the hilt. We the region continue to suffer, and Jam. most of all.
I hope you are prepared for a higher level discussion and desist from your previous ill-conceived agenda. That is, if U are truly interested in regional progress.....<P class=StoryText align=justify>This week he speaks on the shape of the Jamaican financial sector, the state of the economy and the prospects for Caribbean integration.<P class=StoryText align=justify>Jamaica<P class=StoryText align=justify>Jamaica's total debt stands at J$860 billion with 65 cents in every dollar going to pay it. Its oil bill is fast approaching US$1.6 billion. Crime is spiralling out of control with businesses having to now factor security costs. Inflation is in the 17 per cent range and disposable incomes are being constantly eroded. One now has to pay a bill to pay a bill.<P class=StoryText align=justify>"Jamaica is now a very expensive place to do business. The reason why this is so is because of input costs (power and security) and the high cost of capital. Interest rates are perhaps the highest in the region. The deficit is a constant drag on the economy. When you have the national debt growing at about the same as interest rates unless your growth at least matches that, you can expect the gap to widen.<P class=StoryText align=justify>"This means one of two things has to happen. One, you reduce spending and I don't think the government has much room for flexibility there. Two, you increase revenues through taxation or you boost the power of the engine by production. Now I don't believe that Jamaica can take on an increased tax burden.<P class=StoryText align=justify>"I think the next sequence will be a round of wage increases, which will have inflationary consequences. I can also see interest rates going up. Right now I am very nervous for Jamaica," said Astaphan.<P class=StoryText align=justify>He is of the opinion that Jamaica, like the Irish economy did to pull itself out of its economic slumber, should pick winners and should place the economy on those pillars.<P class=StoryText align=justify>"Grace has a wonderful brand, which is recognised at home, abroad and in the Caribbean. Grace's products can be manufactured abroad but sold here. The Grace brand is a great Jamaican asset.<P class=StoryText align=justify>Reggae music is a great Jamaican export. I would make this country a reggae jurisdiction. I would structure a tax code with a mind to attracting world class entertainers to set up shop here. It is easier to sell Jamaica as an entertainment jurisdiction than the other islands."<P class=StoryText align=justify>The financial sector<P class=StoryText align=justify>With interest rates trending down and more competitors on the playing field, local financial sector players are finding the going tough. With slimmer margins, many players are looking to the region.<P class=StoryText align=justify>"The Jamaican financial sector is very strong. Dennis Cohen over at NCB is first class. Milton Brady at FirstCaribbean is a world class operator and with a tremendous balance sheet behind him has turned that bank around. He has made FirstCaribbean a strong competitor in the market. Scotiabank is unquestionably the powerhouse. RBTT has demonstrated its commitment to Jamaica and competes aggressively. One cannot rule out Jamaica National. Earl Jarrett has done a great job there. JMMB can no longer be considered a boutique, not with the number of branches it has. JMMB is very close to being a commercial bank and is now offering a complete suite of financial services.<P class=StoryText al
I hope you are prepared for a higher level discussion and desist from your previous ill-conceived agenda. That is, if U are truly interested in regional progress.....<P class=StoryText align=justify>This week he speaks on the shape of the Jamaican financial sector, the state of the economy and the prospects for Caribbean integration.<P class=StoryText align=justify>Jamaica<P class=StoryText align=justify>Jamaica's total debt stands at J$860 billion with 65 cents in every dollar going to pay it. Its oil bill is fast approaching US$1.6 billion. Crime is spiralling out of control with businesses having to now factor security costs. Inflation is in the 17 per cent range and disposable incomes are being constantly eroded. One now has to pay a bill to pay a bill.<P class=StoryText align=justify>"Jamaica is now a very expensive place to do business. The reason why this is so is because of input costs (power and security) and the high cost of capital. Interest rates are perhaps the highest in the region. The deficit is a constant drag on the economy. When you have the national debt growing at about the same as interest rates unless your growth at least matches that, you can expect the gap to widen.<P class=StoryText align=justify>"This means one of two things has to happen. One, you reduce spending and I don't think the government has much room for flexibility there. Two, you increase revenues through taxation or you boost the power of the engine by production. Now I don't believe that Jamaica can take on an increased tax burden.<P class=StoryText align=justify>"I think the next sequence will be a round of wage increases, which will have inflationary consequences. I can also see interest rates going up. Right now I am very nervous for Jamaica," said Astaphan.<P class=StoryText align=justify>He is of the opinion that Jamaica, like the Irish economy did to pull itself out of its economic slumber, should pick winners and should place the economy on those pillars.<P class=StoryText align=justify>"Grace has a wonderful brand, which is recognised at home, abroad and in the Caribbean. Grace's products can be manufactured abroad but sold here. The Grace brand is a great Jamaican asset.<P class=StoryText align=justify>Reggae music is a great Jamaican export. I would make this country a reggae jurisdiction. I would structure a tax code with a mind to attracting world class entertainers to set up shop here. It is easier to sell Jamaica as an entertainment jurisdiction than the other islands."<P class=StoryText align=justify>The financial sector<P class=StoryText align=justify>With interest rates trending down and more competitors on the playing field, local financial sector players are finding the going tough. With slimmer margins, many players are looking to the region.<P class=StoryText align=justify>"The Jamaican financial sector is very strong. Dennis Cohen over at NCB is first class. Milton Brady at FirstCaribbean is a world class operator and with a tremendous balance sheet behind him has turned that bank around. He has made FirstCaribbean a strong competitor in the market. Scotiabank is unquestionably the powerhouse. RBTT has demonstrated its commitment to Jamaica and competes aggressively. One cannot rule out Jamaica National. Earl Jarrett has done a great job there. JMMB can no longer be considered a boutique, not with the number of branches it has. JMMB is very close to being a commercial bank and is now offering a complete suite of financial services.<P class=StoryText al