By end-May 2014, the authorities will collaborate with fund staff to assess the scale of any remaining efforts that may be needed to reduce public debt to the end-March 2020 target of 96 per cent of GDP, or less.
If necessary to achieve this objective, the Government will identify at that time further measures, for example, further asset sales or swaps and/or other debt-reduction measures.
The latter could possibly include using exceptional assistance by development partners, and, in this context, the Government has approached the Paris Club to explore options for debt relief.
The implementation of these measures would be completed no later than end-February 2015.
The efficiency of the Debt Management Branch will be strengthened through increased staffing, skills training and greater use of auctions for debt placements.
Jamaica's big-name creditors
Jamaica's domestic debt hit a dubious milestone when it busted the trillion-dollar mark in February for the first time, the same month in which Government executed its second debt swap in three years.
The swap, termed a debt exchange by Jamaica but a default by rating agencies, was a precondition of the current International Monetary Fund (IMF) agreement, which would also be Jamaica's second bailout by the multilateral in the same three-year span.
The size of Jamaica's debt stock has pushed the country so far under water that its liabilities amount to 147 per cent of its output. The new IMF agreement aims to reverse the growth trajectory enough to push the debt ratio below 100 per cent and reduce the country's borrowing needs.
In fiscal 2013, Jamaica borrowed J$251 billion to make up the shortfall beyond the J$342 billion of revenue collected to cover its spending plans, but this fiscal year, post NDX, borrowings are projected at J$103 billion. Income is projected at just under J$397 billion, inclusive of J$360 billion of taxes.
Jamaica's top local bondholders are known to include financial conglomerates Scotia Group Jamaica, National Commercial Bank Jamaica, Sagicor Life Jamaica, and JMMB Group.
The top-two commercial banking groups, Scotia Group and NCB, each swapped about J$125 billion of GOJ bonds under the NDX and the associated Private Debt Exchange, or a combined J$250 billion, according to their market disclosures at the time.
Comparatively, Jamaica's total outstanding debt to all its external bondholders amounted to J$289 billion at the close of the fiscal year in March.
Discounting debt to the IMF, which sits on the balance sheet of the Bank of Jamaica, externally Jamaica's single largest creditor and most prolific backer is the Inter-American Development Bank, whose loan support for about 55 projects over time currently places the country at J$122 billion in the IDB's debt.
It owes the World Bank J$64 billion.
Jamaica also borrows from other governments and their agencies spanning twelve countries across major continents. Those liabilities amount to just under J$56 billion, about 30 per cent of which is owed to China.
The total external debt at the end of fiscal year 2013 was estimated at US$8.13 billion or J$804 billion and accounted for 44 per cent of the total debt stock.
According to the Ministry of Finance's annual report on Jamaica's public debt, the Government's focus is concessionary funding from official sources, in particular loans from China and multilateral institutions.
"Loans from these sources have had a positive impact on the maturity profile as they have long tenors and maintain the long-term profile of the portfolio," the report said. These types of loans contribute to a reduction in debt-service costs given that they carry lower interest rates, it said.
Within the new fiscal year, the Ministry of Finance last disclosed debt performance for June. The stock of external debt rose to US$8.27 billion or J$839 billion in the fiscal quarter, while the Jamaican debt climbed to J$1.01 trillion or 55 per cent of the total of J$1.85 trillion.
Jamaica aims to reduce its debt to GDP ratio to 96 per cent by year 2020 under the External Financing Facility agreed with the IMF. The national debt exchange, which cut 1-5 percentage points off domestic coupon rates, aims to deliver annual savings of J$17 billion but is insufficient to hit the programme target.
The Finance Ministry has made an initial approach to the Paris Club regarding a possible pitch for debt forgiveness and is also considering asset swaps and sales among other strategies.
The measures will be reviewed in collaboration with IMF staff by next May. Without the additional measures, the debt ratio is projected at 102 per cent at the end of the programme.
The EFF's success is also predicated on annual growth and fiscal GDP of J$1.35 trillion doubling to J$2.76 trillion by 2020.
China J$17.2 B
Japan J$11.4 B
United States J$10.2 B
Venezuela J$7.56 B
Germany J$2.52 B
Iraq J$2.04 B
Belgium J$1.69 B
Kuwait J$1.34 B
Netherlands J$824 M
India J$592 M
United Kingdom J$570 M
France J$61.7 M
Internal bondholders J$1.004 T
External bondholders J$289 B
IDB J$122 B
World Bank J$64 B
CDB J$27 B
Banks J$24 B