Capital and Credit endorses debt-restructuring programme
The top brass of the Capital and Credit Financial Group (CCFG) are the latest in a string of business executives who have come out in support of the Government's debt-restructuring exercise.
Marketed as the Jamaica Debt Exchange (JDX), the debt-reform initiative is designed to aid in lowering the cost of servicing the country's massive debt, which stands at a towering $1.3 trillion.
The matter came up for discussion during a meeting last week between the three top executives of the CCFG - Chairman and Group President, Ryland T. Campbell; Deputy Group Presidents, Andrew Cocking, Curtis Martin - and the vice-chairman of Blaylock Robert Van LLC (BRV), Carlton Martin, to finalise arrangements for the merger of the CCFG's Florida-based company, Capital and Credit International Inc (CCII) and Blaylock Robert Van LLC (BRV), a premier minority-owned and privately held US-based registered investment bank and broker-dealer in the coming weeks.
The CCFG executives used the opportunity to update Martin on the Jamaican Government's debt-management initiative launched last week Monday, and to underscore the CCFG's recognition of its importance to the success of Jamaica's economic recovery programme.
Stating his organisation's commitment to the programme, Ryland Campbell, CCFG Group chairman, said that "these are extraordinary times facing the country, which call for extraordinary measures, which, though they may require some sacrifice and cause some discomfort, must benefit from total participation from all stakeholders".
Campbell pointed out that such an action calls for collective responsibility, for the national good, despite any possible pain in the short term.
"Jamaica … has no choice and, as such, Capital and Credit is committed to playing its part in rolling out the programme," Campbell said.
The CCFG chairman also pointed out that a debt-exchange programme was not a new concept. He pointed to a similar initiative recently undertaken by the government of the Republic of Seychelles. The programme, launched by the republic in December last year, received approximately 89 per cent participation from the nation's creditors.
Curtis Martin told the BRV top executive that "Capital and Credit Merchant Bank and its subsidiary, Capital and Credit Securities Ltd, had put all the necessary customer communication and processes in place so that there was an immediate roll-out at the start of the JDX on Monday morning".
For his part, Carlton Martin expressed his understanding of the situation saying that "while we at BRV haven't seen the details of the programme, ultimately, the JDX is something that has to be done".
The CCFG and BRV last week announced that both companies had signed a letter of intent to form a strategic alliance by way of a joint venture and equity participation by Capital and Credit in BRV, and which will see the operations of CCII subsumed in and operate as part of BRV's Ft Lauderdale, Florida, office, which is set to open before the end of the first quarter. The alliance is expected to result in mutual benefits accruing to both entities and will allow each to leverage its resources and expand the financial services and investment products offered to their respective clients with a more comprehensive global perspective.