KINGSTON, Jamaica – THE Jamaican government is expecting to better meet its debt-servicing obligations, thanks to a multi-million dollar US currency loan provided by Scotia Bank, Jamaica.
The bank reportedly loaned the government US$100M which is to be used to service its national debt as well as servicing debt that arose following the granting of a US$256.6M bond.
According to a report carried on www.caribbean360.com, the bank’s Vice President of Corporate and Commercial Banking, Wayne Hewitt, said, “We believe that today's announcement will similarly provide confidence to the local and international financial community that a leading global bank has provided a US$100M loan to support the government of Jamaica's fiscal plans.”
The media house also quoted the Chief Executive Bruce Bowen as saying the intention behind the loan is to provide “bridge financing” until a positive change takes place in the global bond market.
"With the current turmoil in global financial markets, regional governments have found the global bond market closed. This loan is intended to provide bridge financing until further multilateral loans can be finalised or global capital markets reopen.”
According to Caribbean360, the Jamaican government and the Bank of Jamaica were applauded for doing “a good job managing the fiscal and monetary challenges facing the country at this time of unprecedented volatility globally”.
“Scotiabank said the loan supports the government's attempts to reduce its exposure to third currencies and to raise as much debt as it can from low-cost multilateral lending sources,” Caribbean360 reports.
Further reports are that a similar loan was given the government by the bank six years ago.
Jamaica News