Tue | Jun 22, 2021

Jamaican debt crisis 101

Published:Saturday | June 9, 2012 | 12:00 AM


The increasing national debt is now a topical issue. However, I must confess that I know very little about the underlying issues that are associated with the national debt.

In addition, I believe that there are many other native Jamaicans who, like myself, know very little about the national debt. Therefore, I believe it would be a good idea to publish an article that demystifies the issues that surround the national debt.

Here is a list of associated issues that could be addressed in this article:

Will the Government ever be able to pay off the debt that the county owe?

If the Government tries to reduce the debt by not borrowing any more money for at least two years, how would this move affect the financial stability of the country?

How does the Jamaican debt crisis compare with the debt in which other countries are in?

What or who causes us to be in the present debt crisis? What are the contributing factors that led to the crisis?

Was the move to seek financial assistance from the International Monetary Fund (IMF) unavoidable? What would have been the advantages and disadvantages of not seeking financial assistance from the IMF?

Does the renegotiation exercise between the Jamaican Government and the IMF involves borrowing more money? What does this renegotiation exercise really involve?