Bank of Nova Scotia News Release

 

On January 14, 2010, the Government of Jamaica launched a Debt Exchange Offer (JDX) as part of a medium term economic programme to create a platform for sustainable economic growth.
In summary, the JDX is an offer to all holders of domestic marketable securities, both USD and JMD for a par exchange with no reduction in principal amount, a reduction in interest rates and an extension in the maturity profile of the debt. The Government is targeting 100% participation from all bond holders and hopes to complete this exercise as a precursor to obtaining multilateral funding support total US$2.4 billion.
The Board of Directors of The Bank of Nova Scotia Jamaica Limited met to discuss and review the impact of accepting the Debt Exchange Offer and, after careful consideration of the risks and benefits associated with participation, the Board has made the decision to fully participate in the Offer.
While the transaction will have a negative impact on the net interest income earned by BNSJ in the near future, the impact on equity is projected to be less than 1% and our key capital adequacy ratios will remain significantly above the regulatory requirements after the transaction is completed.