Jmmb

THE JAMAICA DEBT EXCHANGE & YOU

FREQUENTLY ASKED QUESTIONS

Standing Together for Jamaica’s Sustained Growth

Tel: (876) 998-JMMB (5662) www.jmmb.com

JAMAICA DEBT EXCHANGE (JDX)

THE CONTEXT

Over the past year there have been many discussions around the need to close the fiscal gap, exploring ways to reduce Government expenditure as well as increase revenues. In December 2009, the Government took measures to increase revenues by introducing a tax package as a first critical step in that direction. This measure is painful for many Jamaicans and has far-reaching implications. At that time, our Group CEO Keith Duncan publicly stated “Our country and our people continue to be faced with serious challenges and hardships. However, in these tough times lies the opportunity for all Jamaicans and companies operating in Jamaica to take right action and make difficult choices to secure the future we desire.” He went on to give the commitment that, “JMMB stands ready to share the burden in closing the fiscal gap by supporting creative solutions that would lead to the reduction of Government interest expense in the short term and improve Jamaica’s fiscal profile over the long-term.” Coming out of the January 2010 Cabinet Retreat and recent meetings with leaders in the financial sector, the Government signaled its intent to implement a new Debt Management Initiative, the Jamaica Debt Exchange (JDX). This initiative is slated to save the country $40 billion in interest payment on domestic debt over the next financial year, leading to the reduction of Government interest expense in the short term and improve Jamaica’s fiscal profile over the medium to long-term. JMMB supports this initiative and stands ready to work through the process with the Government and its clients to gain the best possible results for all stakeholders and the future of the Country. This will have an impact on direct holders of the domestic debt, including institutions like ourselves, but will also...