The National Commercial Bank, Jamaica largest commercial bank, participated in the Government’s National Debt Exchange (NDX). Please see their release to stock exchange about their participation in the National Debt Exchange below;
National Commercial Bank Jamaica Limited and its subsidiaries exchanged in aggregate approximately J$118 billion of Government of Jamaica securities in the National Debt Exchange (NDX). The company expects an adverse impact during the current financial year (ending September 30, 2013) on the company gains on foreign currency and investment activities, and interest income from securities held. Given that the coupons on the securities offered were higher than those on the securities received after the exchange, if the company continues to hold the securities received, the interest earned on them would continue to be lower until those securities mature. There may, therefore, continue to be an impact on the interest earned in future years, though there are greater uncertainties around predicting the impact that will be experienced in the future years. This does not take into account the positive impact of mitigating measures and the overall impact of the change in the environment which has happened, and is still happening, in the context of NDX.