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Jamaica moving to sign agreement with IMF
However, Chen said the debt exchange will result in a cut in profits to the financial institutions, leading in turn to a reduction in their value “so they are taking a double hit”.
He said Jamaican workers in both the public and private sectors had been required to make severe sacrifices over the last five to six years and were being asked to continue doing so for the foreseeable future.
President of the Private Sector Organization of Jamaica (PSOJ), Christopher Zacca, while highlighting the negative impact on holders of government instruments, said the majority of the banks are aware of the need for a debt exchange program.
“They are in favor of volunteering and once again stepping up to the plate and helping the country. I must commend them for that. It’s not going to be easy, it affects pensions etc, we have to come together at this time and put together a program to rescue Jamaica’s economy and get our debt down over time.
“We have to ensure that the government sticks to what it is going to do and therefore there may be the upgrading of the Jamaican economy and therefore they could recoup some of these losses,” Zacca said. -(CMC)
