Sun | Jun 26, 2016

Gov't strategy must be supported with decisive action - analyst

Published:Tuesday | February 12, 2013 | 12:00 AM

Financial analyst Neilson Rose says the second debt exchange being introduced by the Government could give it the necessary space it needs for a year or two if the right things are done.

Rose said it was critical that the Government move decisively to collect taxes due from everyone, fight against corruption, cut waivers and install the public-private sector oversight committee for the debt exchange.

"We, however, need details on how these will be done so we can believe that the Government is serious," Rose told The Gleaner last night.

According to Rose, the investments that the Government seemed to be banking on have once again been put on the table and "one is left to wonder, however, if these will be enough to adjust the other side of the equation of debt to GDP."

He said: "We hear that $17 billion will be cut per year from the debt. It would be good, however, to get an idea of what the Government is expecting to get on the revenue side from the investments, especially since it will lose some tax revenues from holders of the government debt as well as other financial sector players."

Rose said the presentations by Prime Minister Portia Simpson Miller and Finance Minister Dr Peter Phillips had gone a far way in quelling the level of uncertainty in the economy.

"We, however, need to hear the specifics of the debt exchange tomorrow (today) to see how far it will go. We also wait anxiously to hear what the minister will say to Parliament regarding discretionary waivers."