THE country’s total central government debt stock increased by $2.3 billion between the end of March, 2018 and the end of December, 2018, according to the Fiscal Policy Paper (FPP) tabled in the House of Representatives on Thursday.
According to the FPP, the stock of central government debt at the end of the third quarter of 2018/19 was $1.944 trillion, consisting of external debt of $1.191 trillion and domestic debt of $752 billion.
Total central government debt increased by $2.363 billion, or 0.1 per cent, over the end-of-March stock of $1.941 trillion.
“This increase was due to a rise in the external debt stock, largely on account of the depreciation of the Jamaican dollar relative to the US dollar, which outweighed the reduction in the domestic portfolio,” the FPP explained.
December 2018 debt stock saw a reduction in domestic and net public bodies, while the stock of external debt increased, compared to March, 2018. However, collectively, the stock of debt declined and continues to trend downward.
“The fall in the domestic debt stock was the result of net outflows from a large amortisation of a benchmark investment note (BIN), which exceeded domestic loan receipts for the period,” FPP noted.
The FPP also pointed out that there was a reduction in outstanding loans that contributed to the lower domestic debt, which was partially offset by an increase in treasury bill issuances.
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