Jamaica Debt Exchange

By David A. Grigorian, Trevor Serge Coleridge Alleyne, Alejandro D Guerson

October 9, 2012

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David A. Grigorian, Trevor Serge Coleridge Alleyne, and Alejandro D Guerson. Jamaica Debt Exchange, (USA: International Monetary Fund, 2012) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Bonds, Economic sectors, Financial institutions, Financial regulation and supervision, Financial sector, Market risk, Public debt, Securities

Keywords: Bonds, Caribbean, Debt, Debt composition, Debt exchange, Debt obligation, Debt operation, Debt sustainability, Financial institution, Financial market, Financial sector, Financial stability, Financial system, Foreign currency, Global, Government bond, Interest payment, Interest rate risk, Jamaica sovereign debt exchange, JDX, Market, Market risk, Overhang problem, Restructuring experience, Securities, US$-denominated debt, WP

Publication Details

Pages:

22
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2012/244
Stock No:

WPIEA2012244
ISBN:

9781475512724
ISSN:

1018-5941

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