Jamaica’s PM says no bailout for failed monetary establishments amid multi-billion-dollar fraud
Jamaica’s Prime Minister Andrew Holness has declared that the federal government is not going to compensate for losses of failed monetary establishments on account of the shortcoming to safe their purchasers’ funds.
He made the disclosure at Tuesday night time’s annual Jamaica Inventory Trade capital markets convention.
“The federal government is not going to socialize any debt, and we is not going to socialize the failure of our banks to be prudential and to guard your prospects,” Holness mentioned.
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“Had been we to do this, it might ship a really unhealthy sign to the banks and funding homes that they are often negligent and count on the Financial institution (of Jamaica) to cowl their negligence. That won’t occur,” he additional mentioned.
Prime minister Andrew Holness mentioned the socialization of debt landed the nation in a disaster that took many years to resolve and “made the whole nation poor,” and mentioned the nation ought to use the chance to fortify the rules governing the sector.
Holness additionally mentioned there could be “no political interference or political cowl” into investigations of the fraud.
The Jamaican authorities not too long ago introduced that the USA Federal Bureau of Investigation (FBI) will help native authorities within the investigation of the multi-million-dollar fraud on the funding agency, Shares and Securities Restricted (SSL).
Holness additionally famous the penalties for monetary and white-collar crimes.
On Monday, Finance Minister, Dr. Nigel Clarke mentioned the federal government is transferring to assessment the monetary sector laws to use harsher penalties for breaches.
Clarke mentioned the assessment will enhance the nation’s capability to detect, examine, and prosecute monetary crimes within the banking, securities, insurance coverage, and pensions sectors, with amendments to the Securities Act, Banking Act, Insurance coverage Act, and Pensions Act.