More generally, the recent turmoil has highlighted a number of weaknesses in the credit markets, namely in the areas of transparency, valuation, risk management practices, the current prudential framework and market functioning. However, a number of recommendations have been put forward by a wide range of fora and organisations (e.g.
These are the Bahamas, Belize, Dominica, Guyana, St. Lucia and St. Vincent and the Grenadines. Ladies and Gentlemen, the magnitude of the fiscal adjustment required to stabilize and eventually reduce the Caribbean’s public debt overhang is neither socially nor politically feasible.