Jamaica's $7.8 Billion Swap May Not Avoid New Restructuring, Barclays Says
Jamaica may need to restructure its debt again to avoid default, Barclays Capital said.
The Caribbean country’s debt load remains high, at 126 percent of gross domestic product last year, after it swapped $7.8 billion of local bonds for securities with longer maturities and lower interest rates in February, said Alejandro Grisanti, an analyst at Barclays Plc in New York.
“Jamaica is still on a non-sustainable fiscal path and will need to restructure its debt sometime in the future,” Grisanti wrote in a report to clients today.
The capture of accused drug lord Christopher “Dudus” Coke won’t solve the gang violence that is harming tourism and draining revenue from the budget, he said in a phone interview.