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Civic group calls for the restructuring of national debt

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  • Civic group calls for the restructuring of national debt

    The group Jamaicans United for Sustainable Development has joined other groups giving cautious support to aspects of the Finance Minister's presentation in parliament when he announced that the government will be returning to a borrowing relationship with the International Monetary Fund, IMF.

    But the group has offered some suggestions to the government on alternatives to improve Jamaica's position.
    Among the suggestions from the Group, which is headed by Lecturer in the Department of Government at the University of the West Indies, Richard Crawford, is restructuring the country's debt.
    The group suggested that an equivalent of the Paris Club called the Kingston Club initiative, meets with all local holders of government debt with a view to reducing interest rates on existing debt by 2%.

    The group also called for the reduction of government agencies and companies and divesting government assets and for the relocation of government agencies to downtown Kingston.
    According to the group, performance-based compensation for public sector workers must be implemented at all levels and where public sector agencies and companies are not performing there must be initiatives to replace non-performing managers.

    And with the government acknowledging that its projections for tax collection is off target, the group says tax collection must be broadened by bringing more informal businesses into the tax net.
    "Jamaica's future reflects its past, having attained only one per cent annual growth over 30 years whilst neighbours have grown at five per cent." (Article)
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