diGging The Domestic Debt

As a follow up to yesterday’s blog about the external debt, we want to finish our look at the makeup of Jamaica’s total debt picture. Today we will look at the Domestic Debt and see how it has changed between January 2011 and September 2012. Please note that you can click on the charts to enlarge.

The two critical components of Domestic Debt are:

The JDX Benchmark Debt and Foreign Denominated Loans & Debt.

JDX Benchmark Debt represents 89% of all Domestic Debt and Increased by J$18Bln or 2.1% in 2012

  • This includes Variable Rate Debt, Fixed Rate Debt, Inflation-Linked Debt and US$ Notes
  • The GoJ has moved away from Fixed Rate Debt in 2012, as the total debt in these instruments has decreased by 6.5% or J$23.5Bln.
  • The Ministry of Finance and Planning, however, has seen the need to issue more Variable Rate Notes, with total debt in these instruments rising by 10% or J$38 Bln, more than offsetting the decrease in Fixed Rate Debt.
  • Inflation-Linked Notes and USD Notes have both increased marginally (~3%) but represent small parts of the total JDX Benchmark Debt as seen in the graph . The total increase in both instruments represents J$3.7Bln

Foreign Denominated Loans & Debts represent 10% of all Domestic Debt and Increased by J$70Bln or 253% during 2012

  • This category saw the largest increase in both actual value and percentage value.  It is represented by US$ Denominated Loans and Euro Denominated Debt.  Each month the loans and debts are recalculated in their respective currencies.  The devaluation of the Jamaican Dollar in 2012 has made this category of debt increase at a faster rate than other debt due to this monthly recalculation.

And here is a look at the growth of the debt in totality:

Take a look at the economic dashboard on the main diGJamaica.com website to look at month over month stats.  The diGJamaica.com data section also has debt information for 2011 and will constantly be updated for your viewing pleasure.