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JIS News

The Debt Management Unit of the Ministry of Finance and the Public Service has confirmed that as at Friday, February 19, the Jamaica Debt Exchange (JDX) transaction has garnered 99 per cent participation by bond holders.
In an interview with JIS News, today (February 22), Senior Director of the Debt Management Unit of the Ministry of Finance, Ms. Pamela McLaren said that, “this development has ranked the country’s debt swap among the most successful in the world, surpassing the Republic of Seychelles which in January this year announced that its debt exchange had ‘received overwhelming support’, following an 89 per cent participation by holders of debts; and Uruguay, which in 2004 recorded participation of 92.9 per cent of bondholders in its debt exchange programme.”
The JDX transactions, which close on Wednesday, February 24, cover a voluntary swap of approximately $700 billion in domestic debt for lower-priced bonds with extended maturity dates and saving the Government an estimated $40 billion in debt servicing charges.
The final settlement date for the exchange offer was extended from the initial date of Tuesday, February 16 to the new date, to facilitate the processing of the transactions and the registration of the new notes, including the issuance of the new notes through the Central Securities Depository (CSD) of the Bank of Jamaica.
Following the launch of the JDX, the Government enacted new legislation in the form of the Government Securities Dematerialisation Act 2010, under which all new Government of Jamaica securities are required to be issued and registered electronically in the Bank of Jamaica’s Central Securities Depository.
The Act requires all participants in the JDX who have made offers to exchange their old notes for new notes, to receive those new notes in the form of a credit into their CSD account. Interest and principal payments in respect of the new notes will also be made electronically under the Act.
The Ministry assures bond holders that normal interest payments on submitted old notes will continue to the February 24, 2010, final settlement date.