THE EDITOR, Sir:IN REPLY to Al Edwards' cover story entitled "FINSAC gets debt relief" carried in the Financial Gleaner of February 8, 2002 it is obvious that Mr. Edwards is either ignorant of the true facts or is tolerant of injustice and/or corruption.
Al Edwards needs to be reminded that the collapse of the financial sector did not begin with 20,000 borrowers refusing to repay their loans. Lest it be forgotten!
1. The Bank of Jamaica began the whole sorry episode when it dispatched its agents with car trunks full of cash to purchase US dollars on the black market. That any Government agency, much less the Central Bank, be allowed to pursue this imbecilic policy and not be brought to book is indicative of the intellectual deficiency of some of our 'brightest minds.'
2. When the Government and this Finance Minister ruled that commercial banks keep 25 per cent of their deposits liquid it was obvious to the most simple-minded that the banks would be under severe pressure to generate profits.
3. The act of hiking interest rates to 40, 50, 60 and more per cent over a prolonged period represented the machinations of a lunatic mind.
Many of today's so-called bad debtors were unsuspectingly caught in this debt trap either wittingly or unwittingly set by the Government. It must be remembered that many voiced the opinion that high interest rates could not be used as a long-term strategy to regulate the financial sector.
Mr. Edwards goes on to say that persons/companies paying their debt on a timely basis will have to bear the brunt of financial sector rescue as taxpayers of this country. This applies to all taxpayers including the so-called bad debtors.
Interestingly, Mr. Edwards does not make any reference to those Ministers of Government and their friends who are alleged to have benefited from loan write-offs and asset 'give-aways' borne on the backs of taxpayers.
When the final chapter on this whole sorry episode on Jamaican history is written I hope Al Edwards will take his place among those who, by their indifference, helped to wreak injustice and malice on the decent and hardworking people of this country, many of whom now find themselves ruined by inept government policies.
One day the full truth will be revealed, as revealed it must, and then we will see who are the true beneficiaries of taxpayers' hard-earned taxes.
I am etc.,
W.J. McKENZIE
Bridgeport P.O.
St. Catherine
