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Jamaica’s borrowing costs jumps to 9-month high
6:39 am, Fri November 9, 2012
The Bloomberg report is this Friday reporting that Jamaica's borrowing costs are surging to the highest level in nine months after defaults by two Caribbean neighbours combined with the region’s slow economic growth prospects.
Yields on Jamaican dollar bonds due in 2019 are now above eight per cent, the highest since February.
According to Bloomberg, while the yields are below the 13 per cent level reached before its 2010 debt restructuring, some investors are concerned that the government will struggle with debt payments following Belize and Grenada’s defaults this year.
Pointing to the NIR falling by more than 50 per cent since April 2011 to US$1.1 billion in October, Bloomberg quoted Senior Economist at JPMorgan in Miami, Franco Uccelli, as asking how much longer can Jamaica continue in this situation without growth.
While not forecasting a default, Mr. Uccelli said investors are wondering if Jamaica will face difficulties meeting its debt obligations.
6:39 am, Fri November 9, 2012
The Bloomberg report is this Friday reporting that Jamaica's borrowing costs are surging to the highest level in nine months after defaults by two Caribbean neighbours combined with the region’s slow economic growth prospects.
Yields on Jamaican dollar bonds due in 2019 are now above eight per cent, the highest since February.
According to Bloomberg, while the yields are below the 13 per cent level reached before its 2010 debt restructuring, some investors are concerned that the government will struggle with debt payments following Belize and Grenada’s defaults this year.
Pointing to the NIR falling by more than 50 per cent since April 2011 to US$1.1 billion in October, Bloomberg quoted Senior Economist at JPMorgan in Miami, Franco Uccelli, as asking how much longer can Jamaica continue in this situation without growth.
While not forecasting a default, Mr. Uccelli said investors are wondering if Jamaica will face difficulties meeting its debt obligations.
