IMF provides financial support to debt exchange participants

Monique Grange, Assistant News Editor
The Gleaner/Power 106 News Centre

More than US$850 million will be made available to financial institutions who participated in the recently concluded National Debt Exchange Programme (NDX), should they encounter temporary financial difficulties.

The money, provided by the International Monetary Fund (IMF), is being made available through the Financial Systems Support Fund.

Speaking at this morning’s Jamaica House press briefing, Minister with responsibility for information, Sandrea Falconer told journalists that the Cabinet has given the go ahead for the Fund to begin operations.

She said the Government will also be injecting US$10,000 into the Fund.

Falconer explained that the Fund will 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.

However, Falconer said 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 between now and 2020.

Like our new Facebook page http://www.facebook.com/gleanerjamaica

Follow us on Twitter http://twitter.com/JamaicaGleaner

radio@gleanerjm.com