Clearly fearing a fallout in the international money markets, the Government moved last night to squash a rumour that Finance Minister Dr. Omar Davies had resigned.

Dr. Davies himself could not be contacted for comment, but the Information Minister, Colin Campbell, told The Gleaner: "Nobody here knows where the rumour came from, including Omar. It is clearly malicious. People don't understand how dangerous it is to play around with a critical portfolio such as the Ministry of Finance."

Anaemic growth

Dr. Davies has had the finance portfolio since 1994, and while under him the Jamaican economy has shown far less than robust growth, he has built a reputation as a tough minister who has the confidence of the international markets.

In fact, earlier this month when the rating agency Moody's maintained a Baa3 rating on Jamaica's sovereign debt, despite its concerns over the country's finances, it defended its decision with an argument about the country's commitment to fiscal discipline and proven ability to respond to shocks. It also pointed to Jamaica's strong willingness to pay its debt.

Moody's response was largely interpreted as a declaration of confidence in Dr. Davies, a sentiment echoed last night by local market analysts.

"It was the Omar factor in that report and that could be upset if there was an abrupt departure by him," said one analyst.

It was that concern that was at play last night when the rumour that Davies had walked out of the Cabinet gained currency when it was reported by the evening radio current affairs programme, 'Nationwide'.

The Information Minister said Dr. Davies was just "as surprised" as he by the news, which Davies learned while attending yesterday's weekly meeting of the Cabinet.