PSOJ supports debt exchange

The Private Sector Organisation of Jamaica (PSOJ) has endorsed the Government’s Debt Exchange Programme.



The PSOJ said the move is consistent with the Economic Policy Framework and recommendations that it has made to the Government.



According to the PSOJ, the fiscal deficit and the debt represent the largest short-term risks to Jamaica’s macroeconomic stability.



It also said the size of the fiscal deficit constrains economic growth and employment by creating high rates of taxation and crowding out investments.



The Jamaica Chamber of Commerce (JCC) is also backing the debt exchange initiative.



The JCC president Milton Samuda said the programme is the single most important effort against high interest rates for several decades now.



He said the JCC recognizes that the debt exchange programme may result in a ratings downgrade for Jamaica.



Mr Samuda said the initiative will also present challenges for financial institutions, which invest in Government bonds.



But he said the difficulties can be overcome.