Payments on Investment Instruments Next Financial Year

Story Highlights

  • The Government is slated to make nearly $116 billion in payments on investment instruments next fiscal year.
  • The allocations include $75.9 billion for repayment on Jamaica-dollar benchmark investment notes; $15.24 for partial redemption of Government-issued treasury bills, pursuant to the Treasury Bills Act, for short-term financing to meet temporary cash requirements arising from revenue-inflow fluctuations; and a $2.07-billion provision for repayment of a US$200-million 8.5 per cent amortising bond.

The Government is slated to make nearly $116 billion in payments on investment instruments next fiscal year.

This sum is contained in the 2017/18 Estimates of Expenditure, now before the House of Representatives.

The allocations include $75.9 billion for repayment on Jamaica-dollar benchmark investment notes; $15.24 for partial redemption of Government-issued treasury bills, pursuant to the Treasury Bills Act, for short-term financing to meet temporary cash requirements arising from revenue-inflow fluctuations; and a $2.07-billion provision for repayment of a US$200-million 8.5 per cent amortising bond.

The latter was formerly issued by Clarendon Alumina Partners Limited in 2006 on the international capital markets and exchanged into a Government of Jamaica security in 2013, and matures in 2021.

Other payments include $10.4 billion for US$425-million 10.62 per cent, and $12.3 billion for US$750-million eight per cent bond issues, which mature in 2017 and 2019, respectively.

Meanwhile, $24.3 billion has been set aside for institutional and other loan payments.

These include just over $6 billon borrowed from local commercial banks to finance infrastructure development, the purchase of goods and services, motor vehicles and air transport, and another $175 million provided by those entities to fund the Sugar Company of Jamaica (SCJ).

Additionally, $936 million is earmarked to meet principal contingent loan payments that may arise out of the invocation of Government guarantees on internal debt.

A sum of $11.06 billion has also been set aside for the execution of a liability management exercise, and $6.05 billion is earmarked for contingency coverage in relation to the repayment of guaranteed loans.

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