Capital Markets the Only Option – Rowe

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Financial Secretary, Devon Rowe, says Jamaica had no option but to approach the international capital markets to finance the buyback of its Petrocaribe debt.

According to Mr. Rowe, the country has secured a good deal

But the Opposition’s Deputy Spokesman on Finance, Favyal Williams disagrees.

Jamaica owes Venezuela nearly 3-billion dollars in debt under the PetroCaribe arrangement.

The two euro bonds secured yesterday will allow the Government to buy back that debt for 1-point-5-billion-US dollars.

Of the two bonds, the larger has an interest coupon of 6.75-percent while the smaller has an interest rate of 7.875 percent.

It’s for this reason, that the Deputy Opposition Spokesman on Finance, Favyal Willaims says it’s not a good deal.

But the Financial Secretary, Devon Rowe, says Jamaica had no option but to go the Capital markets.

Mr. Rowe says the agreements could lower the debt-to-GDP ratio by almost 10-percent.