I would like to share this, with those who choose to read and not be brained washed by our brain dead politicians. I cannot remember where I got the article from, but I did not write it and credit is due to the author. ( Forgive me for not having the name).
Regardless its a very good article, which looks at Jamaica’s debt situation and how it evolved, while exploring some options, which have been banded about to reduce this burden.
Take a close look the comparative analysis between Jamaica’s debt situation and Japan. The author notes that Japan debt to GDP ration stands at 220%, but debt repaying represents only 2% of the budget of that country. Contrast that with Jamaica , where 57% of the budget goes towards debt repayment in this years budget.
Note also that this recent budget was crafted towards the IMF and international creditors for one reason only and that is to get more DEBT, can you believe that. So by the time the next budget comes around and providing nothing esle changes, we are looking at over 60% of the budget going towards debt repayment.
Default is no longer just a possibility, in my opinion is eminent !
( This portion in italic are my opinion and not that of the writer of the article)
Read the article on the link below.
Jay
The author of the piece below prefers to remain anonymous, he also wrote the “Jamaican deb”t that you just posted. He is aware that unanimity was mistakenly broken and would appreciate if you would allow it to remain so. Like you he is hoping it will stimulate positive discussion.
Yes our debt servicing is more burdensome than that of Greece. Ours
requires a greater percentage of revenue.
Our economists ought to be expressing our debt burden as a percentage of revenue or expenditure when comparing Jamaica and Greece.
With over 80% of our debt owed to Jamaicans and Jamaican institutions a default is unthinkable … but we are heading in that direction. The compound rate of debt accumulation seems to be on track to exceed 2011 revenue within 48 months.I am not sure Greece has a primary surplus … so they may be more extravagant than us.
Security Dealers have no choice but to recommend Jamaican bonds to their clients … or risk their own demise. So each investor has to do adequate due diligence … independent of a Security Dealer’s recommendation.
If Jamaicans buy Jamaican bonds they could be feeding the default train … and if the do not they are feeding the same train.
Anonamous