PNP regret bonds downgrade

The Opposition People’s National Party (PNP) said it notes with regret, the decision by international rating agency Moody’s, to downgrade the Government’s foreign and local currency bonds.



Yesterday, the Finance Ministry confirmed that the foreign currency bonds had been revised to B2 from B1 while the ratings for the local currency had dropped from B2 to BA2.



The PNP said while the downgrades are not totally unexpected, the action is a major blow to the country’s prospects of recovery in the medium term.



Against this background, the Opposition said it is alarmed that, for the second time in a few weeks, a senior official connected with the Government, has made an ill-advised public statement on Jamaica’s economy and prospects.



A statement by Industry and Commerce Minister, Karl Samuda, regarding capital controls in a Reuters news interview last month, had sparked controversy.



The Opposition is claiming that an advisor to the Government, recently stated on a local radio programme, that he does not see how the restructuring of the Government’s debt can be avoided.



The Opposition spokespersons on Finance said it is expected that the advisor’s thinking on such a critical matter would be closely aligned with that of the Finance Ministry and the Government.



The PNP said unless the statement is immediately refuted by the Government, it is likely to affect investor confidence in Jamaica, both at home and abroad.



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