PSOJ backs the JDX
THE PRIVATE Sector Organisation of Jamaica (PSOJ) has thrown its backing behind the Govern-ment's $700-billion Jamaica Debt Exchange (JDX).
In a message from the PSOJ, it said "this transaction and the fiscal adjustment programme of which it is a part, marks a significant milestone in our nation's history and represents a crucial undertaking in the cause of economic progress and future prosperity."
The JDX is the Government's plan to redeem, and reissue at lower interest rates, over $700 billion in debt, which is among the pre-conditions for a US$1.3-billion loan facility Jamaica is to receive from the International Monetary Fund.
Despite different voices in the private sector voicing their opinions on the debt swap, this is the first time the PSOJ has released an official statement on the Government's new thrust, which will see holders of government paper take a hit in the interest they would get.
The PSOJ said the Government's plan would benefit the island in the long run, but warned that those benefits would only be achieved given proper management of policy.
"In the longer term, these necessary but painful adjustments will only bear fruit if we as a nation commit to the rigorous fiscal discipline and timely implementation of a policy framework that will improve the competitiveness of the Jamaican economy."