Wed | Aug 4, 2021

Only proper policies can rescue Jamaica from debt

Published:Thursday | June 13, 2013 | 10:17 AM

The International Monetary Fund's (IMF) outgoing senior Resident Representative in Jamaica, Dr Gene Leon, has warned that only policies put in place will determine whether or not the country can claw its way from under the mountain of debt it now faces.



Leon said wishing away the debt stock was not an option as that would still not solve the problem.



Seeking to put the IMF deal into perspective, Leon, who demits office at the end of next month, pointed out that Jamaica is now faced with a 150 per cent debt to GDP ratio as well as accumulated net indebtedness to other nations of about 125 per cent or one and a quarter times what is produced annually.



According to him, this is compounded by 40 years of less than one per cent economic growth, caused by low productivity, lack of competitiveness, rising energy cost and inhibiting bureaucracy.



However, rather than questioning how realistic the programme is, Dr Leon suggested that Jamaica examines it's resolve to meet the target agreed to in the stand-by deal.



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