We don’t need the IMF
Dear Editor,
As I see it, as anyone with common sense should, the alleged consent of some major financial institutions to accept far less than the amount contracted for with the government to facilitate balance-of-payment support by the IMF has not been properly thought through by either the government or the consenting parties, or even by those of influence who are not holders of the bonds involved and have been manifesting support.
Unlike Finsac, which was successfully created by our previous government in addressing and mitigating the problems of the financial sector and saved it with the courage of employing universally accepted practices regardless of political consequence, the debt swap involving loss of income on interest-bearing instruments (bonds) will result in savagery of the financial sector, particularly those exposed institutions. I think too many have been heavily exposed ignoring the value of diversification as a prudent policy against risk as they seek to scoop wealth for themselves at the expense of those who rely on their paraded professed skill and competence which some of them really possess.
Again, the so-called voluntary debt swap will erode confidence without which no relation can survive, or should even exist. Further, revenue will fall in proportion to loss of profit and Jamaican currency will be converted into hard currency resulting in devaluation, which has always been the main weapon in the armoury of the IMF.
I do not think we need the IMF. What we really need is the paltry amount of about US$3 billion provided by soft loans from our dearest friends – the US, Canada and the UK.
I say paltry, because US$3 billion among the US, Canada and the UK is chicken feed and will in fact fertilise their feeding field as we have never experienced either balance or favourable terms of trade with any of them, our dearest friends and allies. In other words, we are all in this together.
I see Trinidad is trying to take the burden of Air Jamaica off our budget.
Owen S Crosbie
Mandeville, Manchester
osss@cwjamaica.com
