By Lavern Clarke, Staff ReporterTHE NATIONAL debt grew fractionally in June, compared to the month prior, according to new figures released by the Ministry of Finance.
At the current outturn of $634.25 billion, the debt stock grew by $50 million, which compares favourably to other months where the figures showed increases in the stock of between $10 and $17 billion per month since January.
The June results were strongly influenced by a decline in the external debt stock which moved from US$4.198 billion to US$4.165 billion, along with a 33 cent improvement in the exchange rate.
In Jamaican dollar terms, the external debt in May converted to $249.4 billion; in June it stood at $246.1 billion, but the gains there were neutralised by a $3.39 billion increase in domestic debts.
Government now owes local investors $388.1 billion, and with its borrowing activity restricted to the domestic market for now, that portion of the debt which climbs to a new high each month the figures are published is expected to continue growing.
The Ministry of Finance last attempted to borrow on the international capital markets in February, but was forced to retreat ostensibly because Minister Dr. Omar Davies said that the market conditions were not right. Those comments were read as a reluctance to pay the higher interest premiums the market wanted to take up new debt from Jamaica whose economy was then 'heading in the wrong direction.'
The external debt stock peaked at $4.39 billion in January and has been declining almost consistently since, and is currently heading towards two year lows.
