GO-JAMAICA
Government fixing IMF hitch
Edited by : AL CIRCLE
1 min read
Prime Minister Bruce Golding is reporting that the Jamaica Government is now closer to divesting its shares in Clarendon Alumina Production.(CAP)
The divestment is a key commitment the Jamaica Government made in the Stand-by agreement with the International Monetary Fund (IMF).
Aluminium Giant UC Rusal has linked its planned re-opening of the Kirkvine alumina plant in Manchester to being allowed to purchase the government's 45 per cent stake in Jamalco, which is held through CAP.
The partnership has not been beneficial because of a forward sales contract signed in 2002 to provide the Government with money upfront while guaranteeing future alumina sales at a set price.
So even though alumina price has now increased on the world market the Government has to provide the alumina at the set price which is much lower than the global benchmark.
The divestment is a key commitment the Jamaica Government made in the Stand-by agreement with the International Monetary Fund (IMF).
Aluminium Giant UC Rusal has linked its planned re-opening of the Kirkvine alumina plant in Manchester to being allowed to purchase the government's 45 per cent stake in Jamalco, which is held through CAP.
The partnership has not been beneficial because of a forward sales contract signed in 2002 to provide the Government with money upfront while guaranteeing future alumina sales at a set price.
So even though alumina price has now increased on the world market the Government has to provide the alumina at the set price which is much lower than the global benchmark.
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