Jamaica Debt Exchange

23 Pages Posted: 26 Jun 2014

See all articles by David Grigorian

David Grigorian

International Monetary Fund (IMF)

Trevor Alleyne

International Monetary Fund (IMF)

Alejandro Guerson

International Monetary Fund (IMF)

Date Written: October 2012

Abstract

The sovereign debt restructuring operation in Jamaica undertaken in early-2010 was a unique experiment that perhaps offered less by way of upside, if compared to the conventional sovereign debt exchanges, but provided credible assurances against further downfall and financial sector distress. A case study of a highly indebted country with domestically held debt, the paper discusses the conditions leading to the exchange, the rationale behind it, as well as its operational aspects. Achievements of the exchange, too, are discussed in detail. The paper also outlines the risks stemming from the high levels of debt - which continue to remain high - requiring prompt and coordinated action by policymakers if the legacy of the debt exchange is to be preserved.

Keywords: Sovereign debt, Jamaica, Debt restructuring, Debt management, Jamaica sovereign debt exchange, debt sustainability, financial stability, bonds, financial sector, financial institutions, financial system, liquid asset, interest rate risk, old bonds, government bonds, liquidity support, debt stock, international reserves, domestic bond, bond holders, financial market, stock of debt, bond prices, eurobond, present value, eligible bonds, rate bonds, denominated bonds, domestic financial system, eurobonds, sovereign debt restructuring, bond market, domestic bond market, variable rate bonds, domestic financial institutions, domestic debt, net present value, financial instability, domestic bonds, i

JEL Classification: H63, G23, H12

Suggested Citation

Grigorian, David A. and Alleyne, Trevor and Guerson, Alejandro, Jamaica Debt Exchange (October 2012). IMF Working Paper No. 12/244. Available at SSRN: https://ssrn.com/abstract=2459344

David A. Grigorian (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Trevor Alleyne

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Alejandro Guerson

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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