FINSAC to begin winding down ACCORDING to
the Finance Minister Dr. Omar Davies, the Financial Sector Adjustment
Company (FINSAC) is to begin scaling back its operations as it has now
almost completed its assigned task of restructuring the country's
financial sector.
Speaking at the Mayberry Investor's Workshop at the Courtleigh Hotel,
New Kingston this week Dr. Davies said: "Unfortunate as it was, the
circumstances that led to the formation of FINSAC, represents one of the
more positive examples of public sector management because none of us had
been through this before. FINSAC is now at the point where there are only
six distinct tasks to undertake. These relate to the completion of the
sale of Union Bank, bringing NCB to the point of sale, dealing with Life
Of Jamaica (LoJ), addressing the non-performing loans on its books and the
sale of the hotels where we are literally down to just the divestment of
Ciboney. From the sale of some fifteen hotels we are down to just
one."
Dr. Davies pointed out that as far as NCB was concerned a major step
was the Government's acquisition of 75 per cent of the bank rather than
the Group. The sale of Union Bank to Royal Bank of Trinidad and Tobago
(RBTT) was due to be completed in December but the Minister said he was
now looking to do so later this month with the lawyers now going through
the finer points of the sale. Regarding LoJ, he said the Government had to
make a big decision as to whether to retain the present majority
shareholders with it now moving to toward selling its majority interest.
He made it clear that the Government had no interest is retaining its
stake in the company and are actively seeking a buyer. The packaging of
the non-performing loans portfolio he added was well under way.
"In terms of what we set out to do with FINSAC we have done well.
I now see advertisements with Guardian Life and Island Life doing well but
let us not forget these are all products of action taken by the
Government.
"Am I satisfied in terms of with where we are with FINSAC? I would
have hoped that RBTT would have taken over Union Bank by now and perhaps
we waited too long to move on LoJ but by and large what occurred with
FINSAC last year was satisfactory."
Dr. Davies said that in the coming weeks a major divestment of a
Government asset would take place and that he did not want to pre-empt the
Prime Minister by going into details right now. Speculation is that this
may well be the announcement of the sale of Jamaica Public Service Company
(JPSCo).
He added that fiscal targets for this fiscal year were on course to be
met, and that will take place. He maintained that the aim continues to be
the containment of inflation and that inflation for the month of December
stood at 0.7 bringing inflation for the calendar year back to 6.1 per
cent.
"I am firmly of the view that any other administration can never
ever again allow Jamaica to slip into a situation of a high inflation
economy. It is totally destructive and drains confidence in savings and is
a cruel punishment on the poor and, as a society, we should accept that as
a national objective that we shall never be out of whack in meeting
inflation targets." We value your feedback
and comments.
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