Government Will Create Enabling Environment for Growth – PM
By: , May 20, 2016The Key Point:
The Facts
- He noted that the model of using austerity to bring down the debt has resulted in little or no growth, and expressed confidence in the ability of the CDB to lead the way as to how the Caribbean region can treat with its debt.
- He pointed out that the matter of debt for policy swap was raised during a meeting with the Vice President of the World Bank for Latin America and the Caribbean, Jorge Familiar.
The Full Story
Prime Minister the Most Hon. Andrew Holness says the Government will maintain fiscal prudence, but at the same time remain active in creating an enabling environment for growth.
Mr. Holness also emphasised that the Administration will pursue initiatives to reduce the country’s debt.
The Prime Minister was addressing a news conference at the Hyatt Ziva and Zilara Resort in Montego Bay, St. James, on May 18, venue for the 46th annual meeting of the Board of Governors of the Caribbean Development Bank (CDB), now in progress.
“One of the things we discussed is the need for more innovative ways of tackling our high debt and how to grow within that context,” he said.
“We have made our position clear. We do not believe in debt forgiveness. We do not think this will send a good signal to the market. We have used this platform to make a call to the international community to consider this problem of high debt and how it is impacting the potential of small, open states like Jamaica,” the Prime Minister added.
He noted that the model of using austerity to bring down the debt has resulted in little or no growth, and expressed confidence in the ability of the CDB to lead the way as to how the Caribbean region can treat with its debt.
“We have endorsed the idea of debt for policy swaps. It is a way of rewarding countries who have a high debt profile and who take on new bold initiatives to preserve the environment. Already there is a mood globally on how you can incentivise countries to adopt policies that are aligned with environmental preservation and managing climate change,” Prime Minister Holness said.
He pointed out that the matter of debt for policy swap was raised during a meeting with the Vice President of the World Bank for Latin America and the Caribbean, Jorge Familiar.
“The level of significance of this is to be determined, but certainly it is worth exploring. They are excited; we are very excited, because it is not just a debt for policy swap on nature, but also debt for equity swap and debt for land swap. We have to explore all options to bring down the debt and to create more space for us to make investments grow,” the Prime Minister said.