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In what appears to be a capitulation to Government’s push to lower rates in line with the Jamaica Debt Exchange (JDX) offer, the monthly treasury bill auction yielded 12.5 per cent on the benchmark six-month bill and 11.68 per cent on the three-month issue.

All the feedback so far on the Jamaica Debt Exchange (JDX) has been overwhelmingly positive, exceeding even the most optimistic expectations, whether one talks to institutional investors (even amongst pension funds and life insurance companies who have particular difficulties with the offer), key bankers, business leaders or even most (obviously not all) individual investors.

Governor of the Bank of Jamaica, Brian Wynter, yesterday lauded the financial sector’s response to the Jamaica Debt Exchange (JDX) as a ‘remarkable achievement’ following a reported 91 per cent participation from bondholders, even while denying the Bank’s assistance to the Jamaican government.

THOUGH the financial sector has come out in strong support of the Government’s Jamaica Debt Exchange (JDX) programme, many will report losses as a result, some significant.

Jamaica’s fiscal deficit is now estimated at 10 per cent of gross domestic product (GDP), and the overall public-sector deficit will likely round out the year at 12.75 per cent of GDP, according to information presented to Parliament by Finance Minister Audley Shaw Tuesday.

A temporary freeze on the licensing of securities dealers whose business models are skewed towards trading in repurchase agreement and other short-term liabilities will take effect next Tuesday as part of the financial-sector reform in adherence to International Monetary Fund (IMF) conditionalities for the 27-month standby loan to Jamaica.

The proposed Jamaica Debt Exchange (JDX) is really “an offer we can’t refuse” in that the Jamaican government requires that the exchange succeed as a condition of Jamaica’s request for a combined U.S. $2.4 billion in IMF and other multilateral assistance.

AN executive from a leading US investment bank has said that while credit is available in that country, lending terms have become far more stricter and will never return to the relatively lenient standards of the past decade.

FINANCIAL secretary Wesley Hughes expects flat growth and single digit inflation for fiscal year 2010/11, provided Jamaica secures the debt swap next week.

Governor of the Bank of Jamaica (BOJ) Brian Wynter has said that Government’s debt management programme will be a critical first step to repaying the US$1.25 billion loan agreement that the country is expected to sign with the International Monetary Fund (IMF).

THE Bruce Golding Administration has received kudos for taking the bull by the horns and tackling the country’s crippling debt burden head on. Its newly launched Jamaica Debt Exchange (JDX) programme and medium-term economic plan are stepping stones toward sustained economic growth.