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INTERNATIONAL CAPITAL MARKETS FOR JAMAICAN BONDS The Government has been closely monitoring the international capital markets for Jamaican bonds and the recent fall in prices alongside negative comments about the country's overall debt and balance of payments positions. In our view, these concerns are grossly exaggerated and our debt position, though high is quite manageable. As we have often stated, our external debt to export ratio is very strong and our external debt to GDP ratio is comparable to that of other similarly rated sovereigns. Moreover, our international bond amortization schedule is well distributed over the coming years. In addition, Jamaica has ample international reserves totalling US$1.4 billion, which is high for an economy our size and relative to our external debt obligations. Jamaica has had worse fiscal deficits and debt to GDP ratios and has never defaulted on any of its debt obligations. Servicing of the debt is guaranteed by the Constitution. We will be announcing revenue measures on Thursday April 17, which will result in a substantial primary fiscal surplus and a reduction in our total debt to GDP ratio. Moreover, the government remains absolutely committed to balancing the budget. The target fiscal deficit for the 2003/04 budget is estimated at 6% GDP. By Financial Year 2005/06 the Government will have a balanced budget. We believe investors will respond positively to the budget and we will be communicating the details of the budget to investors through conference calls and visits to New York. This will enable us to explain our medium term programme, economic outlook and debt strategy in detail and we are confident this will stabilize the market.
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