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09 Aug 2015 15:56 #267090
by chairman
ON July 23, Jamaica raised US$2 billion on the international capital market through the issue of two new eurobonds. US$1.35 billion will mature in April 2028 and US$650 million will mature in July 2045.
US$1.5 billion is to be used to purchase US$3.2 billion in debt owed to state-owned Venezuelan oil company Petroleos de Venezuela SA by Jamaica's PetroCaribe Development Fund. This is a discount of 54 per cent. The rest of the funds will be used for budget financing.
The discount is sufficient to provide relief, although more expensive debt is being substituted for less expensive debt in terms of interest rates. First, the principal has been reduced by more than a half. Second, the repayment has been postponed until 2045. The PetroCribe debt is due payment instalments, beginning in this fiscal year.
Third, there will be an estimated reduction in the debt/GDP ratio from 137 per cent to 125 per cent by the end of the next fiscal year in March 2016.
Fourth, the 2015/16 budget is now fully financed, hence no need to borrow on the local capital market or to raise more tax revenue. Fifth, it provides an injection of foreign exchange that will contribute to stabilising the exchange rate during the low season in tourism.
Sixth, all of these benefits will occur without any direct adverse impact on the primary surplus, as that target does not include interest payments. Seventh, in conjunction with the funds from the Inter-American Development Bank approved last week, there will be no problem with the J$62 billion due in February 2016 as part of the National Debt Exchange in 2013.
The term 'Opposition', used in the Constitution and in common political parlance, refers to the political party with the second-largest number of seats in the House of Representatives. In a well-functioning democracy, this provides for views other than those of the Government to be voiced in Parliament and to the public.
The party designated as the Opposition should not take the title literally and oppose every decision and policy of the Government. Unfortunately, the current Jamaica Labour Party (JLP) is guilty of this foolish approach.
The leadership has adopted this approach to the financing and debt-reduction actions of the Government. Mr Audley Shaw has asked why did the Government not use less-expensive funds from the multilateral financial institutions and achieve even more savings. This was a reasonable question with the answer having to do with the availability of such funding from these institutions and how quickly this could be arranged, since it is outside of the current financial limits of the IMF-led programme.
That was useful, but subsequently the JLP has criticised the entire endeavour.
Presumably, this approach was on the advice of the JLP's economic team. Happily for Jamaica, they are not in charge of the country's economic policy. We don't believe that Mr Andrew Holness does not understand economic issues. However, he needs to get a new and competent team of economic advisors.jamaicaobserver
Always tell someone how you feel because opportunities are lost in the blink of an eye but regret can last a lifetime.
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mapoui
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10 Aug 2015 08:20 - 10 Aug 2015 10:30 #267120
by mapoui
why cant Jamaica simply print its one currency for specific positive purposes at no interest and spend that into the economy, relieving itself of all debt in time.
as Jamaica dances in the international finance it is important to understand that all the money is debt and must be repaid at interest, no matter what temporary eases in the end the debt on Jamaica is onerous, totally negative and must be repaid.
a reduction in debt ratio of 12 points is 12 points and some quantity of cash saved..but to what avail...Jamaica still functions under a burden of 125% debt to GDP ratio which is horrendous...a quantity of debt and increasing interest that cannot be repaid, that has reduced Jamaica's development to Nil, in likelihood..unless drastic measures are taken.
and the drastic measure that can be taken would be to stop borrowing their own money from the international bankers and use it debt free increasingly, until the nation is solvent enough to make deals with other nations for what they want using each others currencies.
what will the bankers do..invade Jamaica? not likely! will they seek to overthrow the Jamaica government and seek to put in people like H Skameron who will let them do what they want..or put in policies that make sure Jamaica is stifled in debt? that is what they do now!
the answer is for Jamaicans all to understand what the reality is and to get together in national effort to end the debt crisis in short time...like the Icelanders and Hungarians did...then kick out the IMF, World Bank and the international bankers and use Jamaica's currency debt free at the government level for national construction.
what the hell can they do..bomb Jamaica, invade and kill a whole lot of people?
but that is what they are doing now, slowly over time killing everybody..killing the nation at a pace they hope the Jamaican people will not notice and start to fight them, forcing them to fight back which would cost a lot of money and kill a lot of their own soldiers, creating a political problem for them at home and in the world.
we in a real a rock and a hard place with the international bankers. leaving them in place bleeding us by taking over our currencies and forcing us to pay interest on our own money will end in our total elimination. but fighting back now may lead to the same result. so what is the choice? there is but one choice..fight back.
and to do so by this morning Jamaica should have come out with the decision to print its own money, debt free, for portions of its budget that can be effected with local production, freeing up money for its budget for which it must borrow..money it can use to pay down the illegal-interest debt it must pay.
if Jamaica does that immediately light at the end of the tunnel appears. bringing in the people can increase the pace of this till all the debt is gone and Jamaicans will be free at last to do as it will with their nation.
the choice the international bankers leaves nations with or death or death.. slow or faster. I say in that event, in that choice there is no alternative but to fight back..that is use your own money which is how it is supposed to be..then kick them out.
by right not a cent more of debt ought to be paid for all the debt is illegal, international crime and crime against humanity as defined by all law anywhere anytime. in fact the international bankers ought to be declared criminals arrested and taken before international tribunals for trial and death sentences when found guilty
but they are big and powerful and small nations cant fight them militarily. but they can stand up and do what is right for them, as long as all man/citizens stand with the nation. it wont work if there are citizens who will sell out to the bankers and run their nation the way the bankers want. they will manipulate your politics to get those traitorous citizens into power and use them to keep the debt/interest swindle going
Last edit: 10 Aug 2015 10:30 by mapoui.
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10 Aug 2015 10:32 #267130
by mapoui
and all the islands.
only Trinidad had money to stay above wartuh. now dat oil price drop Titty in limbo! deh jes ent admt it yet
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10 Aug 2015 10:34 #267131
by ketchim
The Textile market as well for all their CLOTH !
bumba
klaat , rass
klaat , et cetera
Wuh debt ?
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Jamaica raised US$2 billion on the international capital market
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