It appears many of the
island's large financial institutions have signed on to government's debt
exchange offer which closes Tuesday.
On January 14 when the programme was launched, Jamaica Money Market Brokers (JMMB) pledged 100% support and subsequently, Sagicor Life of Jamaica, the Bank of Nova Scotia and Capital and Credit Merchant Bank as well as National Commercial Bank followed suit pledging their support for the initiative.
Now, the Board of Directors of Scotia DBG Investments Limited has announced that it made the decision to fully participate in the Offer.
Path to growth
Chief Executive Officer of Scotia DBG Investments, Anya Schnoor, noted that the decision to participate in the debt exchange was prompted by the fact that the success of the programme is necessary to put Jamaica on the path to sustained growth.
Ms Schnoor noted that the transaction will have a negative impact on the net interest income earned by Scotia DBG Investments in the near future, but that the impact on equity is a reduction of approximately 94 million Jamaica dollars or 1.15%.
She added that Scotia DBG's key capital adequacy ratios will remain significantly above the regulatory requirements after the transaction is completed.
Noting that the exchange is only the beginning of the long road to economic recovery, the CEO encouraged the government to continue to implement other aspects of the medium term economic program.
Deadline approaches
Meanwhile, other holders of Jamaican and US dollar bonds as well as securities with fixed and variable rates, have until the end of Tuesday to take advantage of the government's historic debt exchange offer.
Settlement of the offer is expected to take place on Tuesday February 16.
The government is seeking to raise $700 billion through the programme.
Only bonds issued prior to December 31, 2009 are eligible for the exchange.
The transaction is a fixed price offer with an exchange ratio of one for one or par for par.
This means that for every dollar of old notes investors will receive one dollar of new notes plus the accrued interest on the old notes through to the settlement date.
The new notes comprise 24 new benchmark securities that will replace almost 350 different issues.
The Government is targeting 100% participation from all bond holders and hopes to complete this exercise as a precursor to obtaining funding support totalling $2.4 billion from the International Monetary Fund.
On January 14 when the programme was launched, Jamaica Money Market Brokers (JMMB) pledged 100% support and subsequently, Sagicor Life of Jamaica, the Bank of Nova Scotia and Capital and Credit Merchant Bank as well as National Commercial Bank followed suit pledging their support for the initiative.
Now, the Board of Directors of Scotia DBG Investments Limited has announced that it made the decision to fully participate in the Offer.
Path to growth
Chief Executive Officer of Scotia DBG Investments, Anya Schnoor, noted that the decision to participate in the debt exchange was prompted by the fact that the success of the programme is necessary to put Jamaica on the path to sustained growth.
Ms Schnoor noted that the transaction will have a negative impact on the net interest income earned by Scotia DBG Investments in the near future, but that the impact on equity is a reduction of approximately 94 million Jamaica dollars or 1.15%.
She added that Scotia DBG's key capital adequacy ratios will remain significantly above the regulatory requirements after the transaction is completed.
Noting that the exchange is only the beginning of the long road to economic recovery, the CEO encouraged the government to continue to implement other aspects of the medium term economic program.
Deadline approaches
Meanwhile, other holders of Jamaican and US dollar bonds as well as securities with fixed and variable rates, have until the end of Tuesday to take advantage of the government's historic debt exchange offer.
Settlement of the offer is expected to take place on Tuesday February 16.
The government is seeking to raise $700 billion through the programme.
Only bonds issued prior to December 31, 2009 are eligible for the exchange.
The transaction is a fixed price offer with an exchange ratio of one for one or par for par.
This means that for every dollar of old notes investors will receive one dollar of new notes plus the accrued interest on the old notes through to the settlement date.
The new notes comprise 24 new benchmark securities that will replace almost 350 different issues.
The Government is targeting 100% participation from all bond holders and hopes to complete this exercise as a precursor to obtaining funding support totalling $2.4 billion from the International Monetary Fund.