BEAR STERNS, the United States-based investment banking and securities brokerage firm, yesterday said that Jamaica is barely holding on to its fiscal situation and debt management.
The damning assessment comes after the release by the Ministry of Finance and Planning of fiscal numbers for the month of August which show tax revenues up by 21 per cent and expenditures up by 15 per cent. However wages are up eight per cent with programme spending also on the rise by seven per cent.
Commenting on these numbers, Gregory Fisher, senior managing director of Bear Stearns, said: "This is reflective of considerable fiscal restraint by the Ministry of Finance. However, interest expense is up 32 per cent, reflecting higher debt stocks and higher interest rates this year on floating rate debt. Interest took up an incredible 47 per cent of total expenditures and 67 per cent of revenues. We know of no other country with these ratios.
"Broadly speaking the numbers are on track, but they show a country under continued extreme fiscal pressure and the current trends do not look sustainable."
For more on this story see tomorrow's Financial Gleaner
