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BOJ bails out Government again

Published:Saturday | January 30, 2010 | 12:00 AM

The Bank of Jamaica (BOJ) had to pick up $13 billion worth of bonds to bail out the Government earlier this month.

Deputy Financial Secretary Darlene Morrison confirmed the transaction Thursday night but denied suggestions that it represented an advance to the Government.

Morrison told The Gleaner that the BOJ stepped in to pick up the instruments after a 60-day bond offer floated by the Government had not been fully subscribed.

Not the first time

It is not the first time that the BOJ has come to the rescue of central government with funds. In December, the BOJ confirmed that it advanced the Government $5.1 billion. Of this amount, the central bank said $2.5 billion had been repaid, while the remainder was being converted to securities.

The BOJ also said it picked up $18 billion from two government bond offers that had not been fully subscribed.