As the country seeks to recover from the fallout caused by the novel coronavirus pandemic, Finance Minister Dr Nigel Clarke has reiterated the need for the Government to prudently conduct its economic affairs and manage debt if it is to successfully navigate the crisis.

Speaking at the Private Sector Organisation of Jamaica (PSOJ) post-budget discussion yesterday, the finance minister said that irrespective of the adverse impact sustained from the pandemic, the country has weathered the storm well but remains on a tight leash which calls for the nation’s fiscal affairs to be strictly managed.

“The path out of this [crisis] is pretty clear and on that, discipline needs to be maintained. We have become so accustomed to the level of indebtedness that we have that we don’t really realise how high it is and the risk involved in it. Having had two debt restructuring in the last decade, we cannot under any circumstance afford a third as it would be disastrous.

“One thing that we need to be cognisant of is where we are as a country, which is why it is important to make policy become first principle and not just borrow from here and there and look at what others are doing, but to understand our circumstances and devise policies to suit them,” Clarke explained whilst underscoring the fact that despite the Government’s ability to reduce debt to so some 94 per cent before the pandemic, the country still maintained high levels of indebtedness, ranking third out of 35 other countries in the western hemisphere .

He added, “Given where we are and the risk and uncertainties that we face [related to national disasters, commodity prices, and changes in the global environment] we cannot afford to be caught out when things begin to change in a time frame that is very uncertain. Any one of a number of factors can send Jamaica south, and we are at an event horizon of a very big black hole that we cannot afford to cross but need to get away from quickly.” This he said amid the backdrop of growing concerns surrounding an imminent threat expected to come from an emerging market debt crisis that many believe will affect countries over the next few years.

Dr Clarke stressed the need for the country to take differentiating steps if it is to move past the crisis and tread positively towards the future. In achieving these outcomes he emphasised the need for greater collaborations in the form of public-private partnerships and the private sector to play critical roles in leading growth.

He said that the Government, through its expansion of private equity fund facilities, was also working to remedy challenges related to access to financing in order to unleash more growth for small businesses as well as devise and implement accommodative policies that will deal with bureaucracy and iron out levels of inefficiency.

“Now is not a time to give it up but the time to differentiate. Our direction is unmistakably positive and there is no better time to differentiate oneself than in a time of crisis and that is exactly what we are doing,” Dr Clarke stated.