Jamaica to make funds available to troubled financial institutions
KINGSTON, Jamaica, Thursday March 14, 2013 – The Jamaica government says it will make available more than US$850 million to financial institutions that participated in the recently concluded National Debt Exchange Programme (NDX), if they encounter temporary financial difficulties.
Information Minister Sandrea Falconer told a news conference Wednesday that the money, being provided by the International Monetary Fund (IMF), is being made available through the Financial Systems Support Fund.
She said Cabinet had given the go ahead for the Fund to begin operations and that the Portia Simpson-Miller administration would be pumping an additional US$10,000 into the Fund which support general financial systems stability in light of the National Debt Exchange.
The Financial Systems Support Fund was established in 2010, following the initiation of the first Debt Exchange Programme (JDX), to provide funding to eligible financial institutions regulated by the Bank of Jamaica and the Financial Services Commission.
But Falconer told reporters that the company was not put into operation as there was no call for its resources following the JDX. She said the Financial Systems Support Fund will be administered by the Bank of Jamaica.
In February, the Portia Simpson Miller administration announced the introduction of Jamaica’s second debt exchange offer, as a prerequisite to the signing of a deal with the IMF.
The NDX is aimed at reducing the country’s stock by $17 billion (One Jamaica dollar =US$0.01 cents) by 2020.
Last month, the IMF said it had reached a “staff-level agreement” with Jamaica on the key elements of an economic programme that can be supported by US$750 million four year arrangement under the Extended Fund Facility (EFF). (CMC) Click here to receive free news bulletins via email from Caribbean360. (View sample)