Discussions in Progress on Tax Free Bonds by the Jamaica Mortgage Bank

Minister of Water and Housing, Dr. Horace Chang, has said that discussions are being held with the Ministry of Finance and the Public Service, on the introduction of tax free Bonds by the Jamaica Mortgage Bank, with a view to putting the bank in a more competitive position.
“The Minister has given the green light in principle, the Government is in agreement…but the reality is that you are running a financial institution in a time when the fiscal constraints are real and challenging,” he pointed out.
Addressing a Retreat of the Board of the Jamaica Mortgage Bank, at the Grand Lido Braco Hotel, in Trelawny, on November 13, Dr. Chang said that the sub-prime mortgage crisis in the United States of America, would impact the country, and the Government’s capacity to assist institutions, like the Mortgage Bank, would be very challenging.
He said that the introduction of instruments, such as Bonds, would give the bank a competitive edge in acquiring finance and expanding its role in the market- place.
Dr. Chang explained that although Jamaican banking institutions have not suffered the same level of exposure and fallout in the present financial crisis, as institutions in North America or Europe, they too have to become more careful.
He said that the exposure of the Jamaican banks has been limited and manageable, but the entire macro-economic situation is going to be challenging.
The Minister called on the Board members, to use the occasion to look for opportunities within the current challenges.