Analyst: Gov't has no other option

Financial Analyst Ralston Hyman says the Government cannot afford to give in to any challenge to its planned draw down of $45 billion from the National Housing Trust (NHT).

An application from a citizen’s action group seeking to block the draw down is to be heard in the Supreme Court on Friday, and the Opposition has signalled its intention to fight the Government on the matter.

However, Hyman says though he understands the opposition to the withdrawal of the NHT funds, he believes the Government has found itself in a risky and desperate situation and will do everything to ensure it is able to access the money.

He says the Government has no other option if it wants to ink a deal with the International Monetary Fund.

Hyman says while the NHT withdrawal is not the best solution, it is Jamaica’s only solution.

He says otherwise there would have to be more taxes, which would be impractical at this time.

Finance Minister, Dr. Peter Phillips has indicated that the Government is prepared to amend the NHT Act to counteract a law suit aimed at blocking the Administration from taking the $45 billion from the Trust.

In the meantime, Hyman says the Government cannot afford less than 100 per cent subscription to the national Debt Exchange (NDX).

The NDX should have closed last Thursday but was extended by a week to allow the final three per cent of domestic bondholders to take up the offer.

Hyman says the outstanding three per cent represents $26 billion in savings.

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