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Financial News

Jan 2011 Financial News

Gov't to reallocate financial sector rescue funds this year

Jan 19, 2011

The Government plans to gradually wind down the Financial System Support Fund (FSSF) during 2011 and reallocate the resources for "general purpose international reserves", according to International Monetary Fund (IMF) officials.

The Government plans to gradually wind down the Financial System Support Fund (FSSF) during 2011 and reallocate the resources for "general purpose international reserves", according to International Monetary Fund (IMF) officials.

Last week, in announcing that Jamaica had passed the third IMF test and the IMF board had approved the disbursement of and additional US$49.3 million, IMF deputy managing director, Murilo Portugal, said indicators pointed to domestic financial institutions having weathered the crisis.

"Prudential indicators point to continued resilience of the financial system," Portugal said. "Financial sector reforms aimed at strengthening prudential requirements and the overall supervisory framework are moving ahead broadly on schedule."

The FSSF, representing US$650 million of the gross international reserves held for support to financial insitutions that could have potentially required capital injection following the possible impact of the jamaica Debt Exchange on financial balance sheets, was not accessed up to last December.


Source:
Jamaica Observer
Wednesday January 19, 2011

http://www.jamaicaobserver.com/business/Gov-t-to-reallocate-financial-sector-rescue-funds-this-year_8301419#ixzz1BUn2L3nJ