Bank of Jamaica Governor, BOJ, Brian Wynter has declared that the era of government crowding out private sector investment has come to an end.
Mr. Wynter was speaking at the BOJ’s quarterly press briefing at Nethersole Place in Kingston this morning.
The BOJ Governor explained that for decades, the Jamaican government had an insatiable appetite for borrowing.
Because of all this borrowing, the government and its agencies diverted the flow of financial resources from the private sector, which made investment harder and more costly.
This is what is referred to as crowding out – crowding out private sector investment.
And this had the added impact of impeding growth.
Mr. Wynter says that now, with several quarters of crowding-in, the country is witnessing a long overdue correction.
He declared “We can now consider that the era of government crowding-out has come to an end.”
Meanwhile, Mr. Wynter informed that an IMF mission is currently in Jamaica to conduct the first review under the Precautionary stand-by agreement, SBA.
He says the BOJ’s assessment indicates that all the criteria and benchmarks for the review period have been met.
Once the review is complete, an additional amount of approximately USD$170-million will be made available to the government to draw down if and when needed.