Jamaica Seen Paying September Maturity

Hurricane Dean may dent growth in Jamaica after it hit the south coast of the country hard, but Bear Stearns for one, anticipates no payment disruptions on external debt, including a $225m bond coming due September 1. Bear notes Jamaica’s strong willingness to pay and ample foreign-exchange reserves, at over $2bn. On the bright side, the hurricane did not devastate tourist areas, and Bear predicts tourism will recover quickly. However, the city of Kingston and other areas on the south coast sustained heavy damage, including harm to the agricultural crop and port infrastructure for bauxite. “It seems likely that the storm will cost the government some money,” says Bear.