May 1, 2001
Jamaica faces a long struggle to reduce its debt burden, which stood at J$380 billion ($8 billion) at the end of March. Debt service obligations rose to 62.7% of this year's budget. The government's debt service bill is likely to continue growing as a large proportion of debt issued by the company set up by the government to bail out failed banks matures in the next four years. The finance ministry says its debt management plan includes raising financing in the international capital markets and also containing domestic debt.
Jamaica has strong foreign exchange inflows and a good record of honoring obligations. The government wants to use this sound reputation to issue more dollar and e
Jamaica's government faces a prolonged struggle to manage its debt mountain despite privatizations and the sale of financial institutions. Now the government is turning increasingly to the international capital markets.