Jamaica gets gloomy review by another rating agency

[evanovitch]

Jamaica gets gloomy review by another rating agency
Thursday, 20 August 2009
An international rating agency is insisting that there is a strong possibility that Jamaica could default on its debt payments.

Fitch Ratings says despite the Government's assurance that it will not renege on its debt obligations, Jamaica's deepening fiscal crisis is making this increasingly difficult.

The New York-based firm has pointed to other areas of concern which it says will reduce Jamaica's ability to manage its trillion dollar debt.

Analyst at Fitch, Shelly Shetty, spoke with RJR's Group Head of News, Milton Walker.

"The government has said that there is a constitutional provision to pay the debt, that is the first call on the nation's resources and the government has never defaulted, no matter which government is in power, on its debt payment. Yet from your statement you seem to have some concerns that we could default," Mr. Walker said.

"The risk of default in Jamaica is high because it has a very weak fiscal situation. Clearly we do take into account the very strong commitment of the government to repay its debt through very difficult times we however have to also ensure that while the commitment of the government to timely service its debt is high the capacity to do so has weakened," Ms. Shetty said.

The agency on Wednesday gave the Jamaican economy a B rating, with a negative outlook.

[RichD]

Re: Jamaica gets gloomy review by another rating agency

wonder if dem a prime di pumps

[evanovitch]

Re: Jamaica gets gloomy review by another rating agency

dem a prime someting fi real....

[Dr.Dudd]

Re: Jamaica gets gloomy review by another rating agency

If?? when hav ethey never used news to create soem effect? remember that all this is already done behind th escenes already. It is all about armtwisting. <div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">wonder if dem a prime di pumps </div></div>

[Amberal37]

Re: Jamaica gets gloomy review by another rating agency

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dr.Dudd</div><div class="ubbcode-body">If?? when hav ethey never used news to create soem effect? remember that all this is already done behind th escenes already. It is all about armtwisting. <div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">wonder if dem a prime di pumps </div></div> </div></div>

<span style="font-weight: bold">TIGHTENING OF NOOSES I call it! game-playing!!</span>

<span style="font-style: italic">The government should perhaps look to alternative sources away from the traditional western nations for funding (and I DON'T mean CHINA!)</span>

[evanovitch]

Ratings firms encourage IMF agreement


Ratings firms encourage IMF agreement


At least two international credit ratings agencies say Jamaica needs to secure an agreement with the International Monetary Fund in order to avoid financial default.

Moody's Investors Service on Friday said Jamaica needs the extra cash in order to address financing shortfalls worsened by the global financial crisis.

Fitch, meanwhile, has described the country's financial situation as precarious.

Jamaica's B rating by Fitch suggests that the country has minimal capacity to meet its commitments and is vulnerable to short term adverse changes in financial and economic conditions.

The Bruce Golding administration in Kingston is in the process of negotiating a stand-by agreement with the IMF.

Lawmen investigated

[Dr.Dudd]

Re: Jamaica gets gloomy review by another rating agency

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: amberal37</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dr.Dudd</div><div class="ubbcode-body">If?? when hav ethey never used news to create soem effect? remember that all this is already done behind th escenes already. It is all about armtwisting. <div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">wonder if dem a prime di pumps </div></div> </div></div>

<span style="font-weight: bold">TIGHTENING OF NOOSES I call it! game-playing!!</span>

<span style="font-style: italic">The government should perhaps look to alternative sources away from the traditional western nations for funding (and I DON'T mean CHINA!)</span> </div></div>Guess what?? ther is only the west and China. no other options.
if years ago Jamaica had only one choice. It was the IMF and nothing else. They it'ts options improved to local private placement. As soon as th einternational marketrealize that the locals was making all the money. they jump in. But what they did was act as the middle man. So they offer the loans to th egovernment, then resold it at a premium to the same locals. At present 85% of foreign placements are only foreign inname, but they havebeen resold to local investors. That is one of the main drivers of the exchange rate. withlocals investirs selling currency to get FX to buy the government paper from th eforeign brokerage houses.
Now the Chinese is the only optuon they have. the chinese buy loans as low as 2% through government agecies. yet becauuse the governments is babboozled by ignorance they have not been able to get in that market. The chinese need alternativ esources for their investments. while Jamaica need a cheaper source of funding, to repay the expensive loans they hav.

[johnnycakes]

Re: Jamaica gets gloomy review by another rating agency

Not to worry.

Capitalism will pull Jamaica up.

Look how rich a lot of the capitalist countries have become.

Jamaica doesn't need loans.
It needs to exploit weaker Third World countries in the same way that the First World countries do it.
Then Jamaica will have a lot of money that IT can loan to the nearly broke United States at a very healthy interest rate.

Capitalism (we are told) works miracles. Jamaica just has to be more business like.

Just because ALL the other poor Third World countries are slipping further down the economic slide doesn't mean that Jamaica has to follow suit.

Just one or two capitalist miracles like a diamond studded gold meteorite hitting Kingston and Jamaica would be rolling in money.
(although Rizlas are much better)

Do I sound sarcastic?

[Wahalla]

Re: Jamaica gets gloomy review by another rating agency

I think the chinese pay low % for paper that have high rating... They have recently sold a 36 billion wortj of US paper.. which is unusual.... So what would be in it for China ???? To associate with Bolt ??? We have a C+ rating... C+ means points above base rate. .straight buiness... Last year there was a bunch of money in the middle east... But that dried up.. There will be a bunch more at the end of the year as oil will climb again.. As for Venezuelan money... That is a joke, PDVSA paid it contractors by taking them over... !!!! andd reneoitating over 9 billion that is owed.. (They tried that shiiiiite with me but I came out by the skin of my teeth...)

There is Libyan Money... 75 Billion a year is the number I heard.. but they want their pound of flesh.. (In the early 2000, the Libyans were buy up Zimbabwayan debt then Mugabe did a Mugabe and defaulted on itthey ran like a stuck pig...)