JAMAICA: Prime Minister Bruce Golding IMF Interview All Angles Part 5 of 5

JAMAICA: Prime Minister Bruce Golding IMF Interview All Angles Part 5 of 5

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[gelsport01]

Oh!!!I was just reffering to what the Prime Minister said,that it was true!!!

[rogermoore27]

No I didnt check the figures. I laughed at the metaphor 'We really have to die to go to heaven.', not your figures.

[gelsport01]

YES!!!! 4% EXACTLY!!!

VS 24% UPWARDS!!!

Did you actually check these figures before you laughed?

Question: Then why would anybody consider an IMF loan considering the conditions even though the tough choices are good for an economy????

[rogermoore27]

Your last sentence made me laugh although I was confused as to how exactly to understand it...lol. So is it that the IMF loans are cheaper than other sources?

[gelsport01]

If by cost of borrowing you mean intrest rates and other cost such as job losses etc, yes, it is going to be tough. But what are the alternatives to borrowing (IMF) for Jamaica: (1) borrow expensive loans from other sources (2) shut down the country. The mismanagement of the last 2 decades leaves us with this problem and the longer we borrow our way around making the tough decisions the harder it will be when a future generation has to deal with it. We really have to die to go to heaven.

[rogermoore27]

Well I heard that Jamaica's credit rating just got lowered from B to C, so things are not looking good for borrowing. Government tried to say that whatever took place within the last few weeks was not taken into consideration. Of course that would not be. Unless Jamaica did something like find oil, most anything within the last few weeks cannot overshadow the last 5 years or 3 years. Cost of borrowing will go up.

[gelsport01]

It is not a matter of strenghth, it is about our debt to GDP ratio and the state of our macroeconomy, macropolitical-economy etc. There are certain expendtutres that are considered critical to macro stabilty: physical and intelectual infrastructure, health care. These may be revised and recmendations may come as conditions to spend more in these areas. There are a myriad of other areas crucial to develpment that will be revised in our econmy that will determine the conditions. Thats my opinion.

[rogermoore27]

what conditions do you think are Jamaica's strength and which in turn would reduce the cost of borrowing?

[gelsport01]

You cant hear the conditions until they have at least send in their letter of intent ( i believe) and they have assessed Jamaica's position to make recomendations that are to become the conditions. Remember the PM said the IMF is now setting their conditions based on each country's economic position.

[rogermoore27]

I am still to hear what these conditions of borrowing are.