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Gov’t loses US$5bn in H2000 loan agreement
An aerial view of a section of Highway 2000.
The government is seeking permission for the guarantee of the refinancing of an existing loan of 204.4 million euros.
The loan was given to the Development Bank of Jamaica for the National Road Operating and Constructing Company to finance Highway 2000.
The lenders are the Development Bank of Venezuela.
However, the Opposition requested an amendment before the resolution can be supported.
Opposition Spokesman on Finance Dr. Omar Davies said he is familiar with the loan, which he explained was negotiated at an interest rate of 7.5% without a GOJ guarantee.
He said something happened and the Bruce Golding led government fearing the euro would continue decreasing in value, made a decision to swap from euro to US dollar.
Dr. Davies explained that the move has resulted in the government losing money on the interest and paying more interest.
Peter Bunting estimates that the loss could be about US$5 billion.
With that, the Opposition proposed to renegotiate the terms of the contract and that the compensation to the arrangers be capped at a reasonable sum.
The debate was then suspended so to consider the amendment so that a decision can be made on the matter.
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An aerial view of a section of Highway 2000.
Comments(1)
What do you expect if the Minister of Finance ran a sure win, can't lose, business in Jamaica, a gas station bankrupt. Among the constitutional changes that must be made in Jamaica before things can get better is this madness asbout elected officials becoming Ministers. We have to find the most competent people for these jobs.
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