The Bank of Jamaica (BOJ) has announced that it will pre-pay over US$112 million worth of foreign currency certificates of deposit that were scheduled to mature next year and 2019.
In a release on Thursday, the Central Bank said, in accordance with the contractual three-month notice applicable to each instrument, repayment of the principal plus accrued interest will be made on July 28.
The central bank said it considers it prudent to redeem the instruments as they feature coupons that are higher than current market rates for similar instruments and intends to make an offer to holders of the instruments to immediately redeem all or part of the principal amount.
This offer will be made in a separate notice.
Sufficient foreign reserves
The BOJ says Jamaica’s foreign exchange reserves are at comfortable levels as the Net International Reserves (NIR) are at an all-time high of US$2.9 billion.
Under the current precautionary Stand-by Arrangement with the International Monetary Fund, focus is placed on the level of non-borrowed reserves which, at US$1.9 billion are currently ahead of this year's semi-annual targets.
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