Gov’t Prioritising Primary Dealers Reform to Strengthen Debt Market

The Government continues to prioritise reform of the Primary Dealers (PD) System, emphasising that a well functioning framework is essential for the ongoing development of the domestic debt market.

Minister of Finance and the Public Service, Hon. Fayval Williams, made the disclosure while opening the 2026/27 Budget Debate in the House of Representatives on March 10.

She explained that the principal responsibility of primary dealers is to act as market makers by facilitating the trading of Government of Jamaica (GOJ) and Bank of Jamaica (BOJ) securities.

According to Mrs. Williams, this role enhances secondary market liquidity, improves price discovery, reduces market and refinancing risks for the Government, broadens the investor base for GOJ and BOJ securities and, ultimately, lowers the Government’s cost of funding.

Meanwhile, the Minister indicated that during fiscal year 2026/27, the Government will continue its engagement with the Central Bank on introducing new types of financial instruments.

She noted that the move is intended to create a more diverse suite of instruments within the portfolio.

Mrs. Williams noted that the introduction of new instruments is expected to enhance liquidity and flexibility, enabling investors to better align products with their cash flow needs and risk preferences, while providing the Government with more competitive funding options.

The Minister added that the new instruments could further enhance market resilience, stability, and financial depth, contributing to the continued development of a robust domestic debt market.