Quote from Dr. Wesley Hughes

[Assasin]

"He confessed that the difficulty in signing the IMF deal was due to "starting from a fairly weak position in terms of credibility in Washington".


More evidence that Latti had to go.

[Mosiah]

Yuh sure is Latti dem was a talk bout?

[Jawge]

LOL woee
BTW Latti nuh Haitin? YUh know mi couldn't call him name till mi go JA last November (when mi here everyone ah call it).

[Hortical]

Well this popped up in my email and I do not have any financial bizness with dem.

Dear *** Member:

Re: Jamaica Debt Exchange Programme (JDX)

The Government of Jamaica has negotiated an Agreement with the

International Monetary Fund

(IMF) to access a US$1.25 billion loan. The 27-month loan agreement is expected to trigger another US$1.4 billion in funding from the

World Bank

, the

Inter-American Development Bank

and the

Caribbean Development Bank

.

In addition to the global financial crisis, Jamaica has suffered from years of low growth. Without access to its normal international credit markets, and in view of the decline in the core bauxite/alumina export sector, major financial reforms are now necessary to put the economy on the path to sustainable growth.

Prime Minister, Bruce Golding, told the country recently that without the IMF Agreement, Jamaica would be faced with “a catastrophe,” as the exchange rate would continue to soar, followed by the cost of living. Elements of the IMF programme involve sacrifices for all Jamaicans. The public sector will be restructured and its wage bill frozen over the next two years; Air Jamaica will be divested; revenues from property taxes will be increased; and a

Central Treasury Unit

will be established to monitor the management of the national debt.

The single most important reform is the

Government of Jamaica Debt Exchange Programme

(JDX) which is expected to save the country approximately

$40 billion

in interest. This involves recalling some

$700 billion

of domestic government bonds, with interest rates ranging up to 28 percent. Jamaica is paying out

$182 billion

in interest costs, and an agreement on the Debt Exchange Programme is an essential part of bringing the economy on track, as well as finalising the IMF Agreement.

All local financial institutions holding domestic Government of Jamaica bonds were requested to exchange them for new bonds that will carry lower interest rates and extended maturity dates.

The

XXX

will honour its existing agreements on member investments for the periods specified and at the rates initially agreed. This, despite the fact that the rates on government instruments supporting these investments will be adversely affected. In addition, while we are already subsidizing our mortgage rates with interest income from Government of Jamaica securities, a slight reduction in these rates is being considered, at this time.

Members should note, however, that the current policies are expected to result in lower inflation levels, which have the effect of boosting the real return on investments, thus easing the impact of the lower interest level over the long term.

We will continue to provide our members with additional information through a series of meetings to be held across the island and updates on our website; and, our Customer Service Representatives will be available to discuss these matters with you.

At the same time, our entire management team and staff members are prepared to work harder to enhance the efficiencies of our operation; and we assure you that, "

We'll help you find a way

.”

Yours sincerely,

XXX CD, JP
General Manager

[Assasin]

Well a nuh just Latti. The whole way how we do finance and our record of failing every single target we set gave us no credibility. that include Latti who was at the helm for a long time.

As the Dr. said Jamaica had to prove that they were serious and Latti was part of the undercurrent.

[Karl]

Lazie: Some of those who will suffer...

What happens to those with investments in 'govt. paper' who included the returns on such in calculations on magnitude of obligations (loans & loan projections...support capitalisation...etc. currently funding...to fund...retooling, expansion, investment, cash flow support...whatever...) they could comfortably service... and or other investments projects currently underway or planned?

[Assasin]

wouldn't you recommend they simply refinance?

[Karl]

wouldn't you recommend they simply refinance?

...all who are along that chain?
...including the guy at the end of the chain? The ordinary unskilled man...woman who has the kids to feed, the children to go to school, the little bed to pay for...etc., etc?

...you see Sass the guys at the top are few...it is the vast multitude at the bottom who usually feels it most/gets the shaft!

...I said that this government would be a majority government for 18 months...as they would bring back the failed policies of the Seaga government...
...contract government...not work at making the (individual) worker more efficient,

...putting more people into the ranks of the unemployed and underemployed...not the reverse i.e. putting more and more people into productive work, having more and more people employment and reducing those unemployed and underemployed,

...reduction in improvement and buildout of infrastructure... not improved delivery of services and greater access to services,

...reduction of opportunities for greater numbers of our people...not increasing opportunities for greater numbers of our people,

The Seaga government put up figures of increased per capita income by sharing among smaller numbers....

The Seaga government under counted population figures that even up until today you have the 'nacy story of aging of the society, explosion in numbers of children being born...and instead of rapid rise in population, a stable constant (increase in population so gradual that the figures must be a joke) level of under 3,000,000 from 'Wappy waus a bwoy'.

...the education institutions continue to pour vast numbers of 'graduates' onto the streets (onto the numbers of unemployed and under-employed) at the same time the economy is contracting (i.e. throwing formerly employed and under employed into the streets)...this government joins the fun...and shall pour great numbers of persons once employed into those self same streets that are full of persons in dispair!

We'll then hear how per capita income has increased and the great job that was done...as those on the streets become a part of the 'nancy story...the invisible people!

[Assasin]

Explain in English how they get shafted by the deal. Your American twan worst than HL's

[Karl]

Explain in English how they get shafted by the deal. Your American twan worst than HL's

You do not see revision of projections by those whose plans included use of those high %age returns? ...you do not see contraction in project starts, folding of some and revision and downsizing of some, etc., etc...and thus less employment opportunities?

...You do not see returns from those funds failing to meet the expectations of say pensioners and others and thus 'ban belly'...less consumption = less jobs? You do not see increased unemployment and underemployment...well if you do then who gets 'shafted' the most? Nuh dem who deh a di hen a deh chain? ...di bat-tan a di chain?

...but den? iffen yuh si less return pan yuh inves-ment dem a guh gi yuh more...den happy days deh ahead!

[Assasin]

there is no great loss of jobs projected from low interest rate.

The people are able to get back their capital and a lower amount of money. It was either that or default and they got nothing. Which you rather? Which other government you know offer bond at 20% for more than 10 years? That is more like a PONZI scheme.

The job lost coming from the proposed cut in budget and government spending not from the reduce rates.