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Opposition says no to second JDX
Wednesday, May 04, 2011
THE Opposition People's National Party yesterday warned the Government against trying to 'pull off' a second Jamaica Debt Exchange such as the one carried out last year.
Making his contribution to the 2011/12 Budget Debate at Gordon House in Kingston yesterday, Opposition Spokesperson on Finance Dr Omar Davies said while the virtues of the voluntary debt swop programme — under which holders of Government bonds accepted lower interest rates and longer maturities — had been lauded by the administration, a second one would be suicide.
The JDX, which was pivotal to Jamaica's signing of a 24-month Standby Arrangement with the International Monetary Fund (IMF) last year, had been expected to save the administration $40 billion in interest expenditure on domestic debt in the last fiscal year.
Last Thursday, Finance Minister Audley Shaw, in opening the debates, had said the JDX was largely responsible for the stable, but delicate, macro-economic environment.
The JDX, he said, "has become a symbol of the courage and spirit of undiluted patriotism that we represent as a people".
But yesterday Dr Davies, who said there had been rumblings of a second debt exchange, warned that the Opposition would not take it lying down.
"The minister (Shaw) during Standing Finance Committee gave the assurance that the administration had no such intention. However, I want him to realise that there are persons, not necessarily within his ministry, but closely aligned to the administration who are speaking about a JDX 2; we worked too hard to establish Jamaica's credit worthiness to sit idly by and see it destroyed," Dr Davies told parliamentarians yesterday.
"While we trumpet the success of the JDX, let the following be fully recognised: The JDX speaks only to interest rates. It does not affect the principal amount and so the over $1.570 billion of debt will have to be repaid.
"I say very, very calmly and with all good intentions to the minister, let us not even contemplate taking any such step, I am referring to the possibility of a JDX 2," Dr Davies said.
Read more: http://www.jamaicaobserver.com/news/...#ixzz2KeaLB3d3
Wednesday, May 04, 2011
THE Opposition People's National Party yesterday warned the Government against trying to 'pull off' a second Jamaica Debt Exchange such as the one carried out last year.
Making his contribution to the 2011/12 Budget Debate at Gordon House in Kingston yesterday, Opposition Spokesperson on Finance Dr Omar Davies said while the virtues of the voluntary debt swop programme — under which holders of Government bonds accepted lower interest rates and longer maturities — had been lauded by the administration, a second one would be suicide.
The JDX, which was pivotal to Jamaica's signing of a 24-month Standby Arrangement with the International Monetary Fund (IMF) last year, had been expected to save the administration $40 billion in interest expenditure on domestic debt in the last fiscal year.
Last Thursday, Finance Minister Audley Shaw, in opening the debates, had said the JDX was largely responsible for the stable, but delicate, macro-economic environment.
The JDX, he said, "has become a symbol of the courage and spirit of undiluted patriotism that we represent as a people".
But yesterday Dr Davies, who said there had been rumblings of a second debt exchange, warned that the Opposition would not take it lying down.
"The minister (Shaw) during Standing Finance Committee gave the assurance that the administration had no such intention. However, I want him to realise that there are persons, not necessarily within his ministry, but closely aligned to the administration who are speaking about a JDX 2; we worked too hard to establish Jamaica's credit worthiness to sit idly by and see it destroyed," Dr Davies told parliamentarians yesterday.
"While we trumpet the success of the JDX, let the following be fully recognised: The JDX speaks only to interest rates. It does not affect the principal amount and so the over $1.570 billion of debt will have to be repaid.
"I say very, very calmly and with all good intentions to the minister, let us not even contemplate taking any such step, I am referring to the possibility of a JDX 2," Dr Davies said.
Read more: http://www.jamaicaobserver.com/news/...#ixzz2KeaLB3d3
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