AIR Jamaica and the Ministry of Finance have reached an agreement on Government's increased equity stake in the airline, but both parties are refusing to discuss the issue ahead of Cabinet's consideration of the deal.
In a one sentence response to Financial Gleaner queries, the Ministry of Finance indicated this week that a 'shareholders agreement' was in place.
"It is expected that the shareholders agreement will be finalised and agreed in Cabinet after resumption in September," wrote Carol Jones, deputy financial secretary for public enterprises.
Air Jamaica's deputy chairman, Christopher Zacca, in a Financial Gleaner interview, had revealed last year that the airline had asked Government to increase its equity stake in the national carrier from 25 to 45 per cent, under a debt to equity swap which would clear the airline of its liabilities to the Government.
The Ministry said it would not comment on whether the initial deal has been amended, while the airline's communication director, Sandrea Faulkner, said Zacca has taken the view that any comment should come from the Government.
