Wed | Oct 18, 2017

BOJ to make US$112 million in prepayments on bonds due 2018, 2019

Published:Friday | April 28, 2017 | 12:30 PM
A section of the Bank of Jamaica building in Kingston. – File Photo

The Bank of Jamaica has announced that it will be making US$112 million in prepayments to holders of certificates of deposits maturing in 2018 and 2019.

In a release last evening, the Central Bank said it would be making the prepayments in July, in keeping with the requirement for it to give a three-month notice.

The Central Bank says it considers the move prudent given that the instruments feature coupons with rates higher than similar instruments on the market at the moment.

In addition to the three-month notice, the Central Bank says it will be making a direct offer to the registered holders of these certificates of deposit to redeem principal amounts in part or full.

Meanwhile, the Central Bank says the country's Net International Reserves – NIR remain at a record US$2.9 billion.

It says the non-borrowed portion of the NIR stands at US$1.9 billion.

This is well ahead of the semi-annual targets set by the International Monetary Fund under the precautionary standby arrangement with Jamaica.