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President claims the Caribbean is on the edge of insolvency as many states were spending more on servicing external debt and has repeated his call for imperative debt consolidation by the international money establishments. Jagdeo, who heads a special Caribbean association task force to evaluate the finance emergency in the area, told a media meeting the debt situation is worsening.

The area is heading towards insolvency if nations might be announced broke, lots of the states simply can't pay their way and they cannot meet repeated cost and pay their debts, the Guyana state head warned, adding unless there's radical restructuring or increase sources of money, the situation will get worst.

Jagdeo recounted that poor productivity and the big debt were the most important factors making a contribution to the monetary crisis in the area, adding that the situation as further amplified by the worldwide finance crisis, the decrease in exports, remittances and visitor arrivals.We are hoping with the decrease of the emergency, not that we are out of the woods so far and it's still really flimsy, but this will improve the macro-economic basics of these countries, but they can't sustain their big amount of debts. he announced on Fri.

Jagdeo expounded in the CARICOM heads meeting with top officers of the Earth Bank, the Global Financial Fund ( IMF ) and the Inter-American Development Bank ( IDB ) in Dominica earlier in the month, the area took the chance to highlight its case.World Bank president Robert Zoellick recounted his organization was ready to sending professionals to the varied Caribbean states to evaluate their debt handling strategies.

But Jagdeo announced there's an enormous challenge in creating a regional debt technique since individual nations have unique debt issues and this must be address on a case by case basis.Many nations won't have a good future unless their debt issues are tackled, he revealed, noting that Guyana had faced similar issues during the past.We had that when the burden of debt use to suck up over 94 percent of our money, it sucked the life out of our economy, and we had tough period of handling that. Jagdeo added.Earlier in the week, a senior St Lucia central authority official expounded that high debt levels had become a feature of most nations in the area.

If you look right across the area the tale is pretty much the same.Cash have decreased significantly, while spending has stayed quite high, especially given the requirements of the govt. to provide desirable social security net programmes, asserted Director of Finance Isaac Anthony told a Caribbean Development Bank ( CDB ) / Institutional Financier Roundtable discourse.