For the first time in many years the Government of Jamaica will be paying out money borrowed in previous years and not re-borrowing it.
Finance Minister Dr Peter Phillips made the disclosure on Wednesday, saying this action will bring about lower interest rates in the economy.
"When we make the pay-outs - and there is 62 billion dollars due to be paid out early next year - the government is not going to be going into the market to borrow it back," he declared.
According to Dr. Phillips, this restraint on the part of the government will "constitute a further pressure to lower interest rates."
He said this will cause banks "to learn to get into banking again, rather than simply waiting on the government to borrow their funds."
In that regard, he said they will "have to make estimates of risks and learn to estimate risks again."
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Government to cut local borrowing
8:40 am, Thu May 28, 2015
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