The Bruce Golding administration can count on the support of the Opposition if it sticks to its decision not to bail out persons burnt by the collapse of any alternative investment scheme.

But there could be 'bangarang' if the Government attempts any intervention similar to the multi-billion-dollar bail-out implemented by the People's National Party (PNP) administration following the collapse of the financial sector in the 1990s.

Former finance minister, Dr Omar Davies, says early indication from the present Government is that there will be no bail-out and that is a position the Opposition wants maintained.

Unambiguous statements

"Given the early unambiguous statements on these schemes, made by me, as (finance) minister, and the heads of the two regulatory insti-tutions and subsequently reiterated by the new administration, there can be no expectation of state intervention on behalf of the clients of these institutions," Davies told members of the Kiwanis Club of Kingston Tuesday.

The former finance minister expressed concern that so many persons from all sectors of the society were quick to invest in schemes which offered returns that were not in keeping with world trends.

Collapse

He said while it was unlikely that the collapse of these schemes would affect the country's fiscal position, the formal banking sector could be affected by an increase in bad loans, as persons borrowed money to invest in these schemes.

Davies noted that a lack of information from the alternative schemes made it difficult for the authorities to determine issues such as how many persons lost money and how much money other persons stand to lose.