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Jamaica Included in List of Seven Countries Near Bankruptcy (Video)

Jamaica has been included in a list of seven countries who are near bankruptcy.

The list by Moody’s Investors’ Services names countries that are approaching or have narrowly escaped bankruptcy.

Despite making the list, Jamaica is the only country of the seven listed that was given a Positive outlook.

According to USA Today, Though Jamaica’s credit rating of Caa2 is among the worst, it still represents an upgrade from a Caa3 rating. Moody’s also upgraded the Jamaica’s outlook to positive in May. No other country with such a poor rating has a positive outlook. Jamaica recently simplified its tax return filings, reformed tax incentives, and implemented a minimum business tax. According to Moody’s, the improved business climate supports private investment and confidence in the economy.

  

Jamaica’s consistently high debt burden, along with high interest rates, have weakened the credit rating. Sovereign debt remained above 140% of GDP each year from 2009 through 2014, when it was third highest compared to other countries. Government debt fell slightly this year to an estimated 133% of GDP. However, this was still higher than all but three other countries.


Image via USA Today
Image via USA Today

The seven countries listed are as follows:

1. Ukraine

2. Greece

3. Venezuela

4. Belize

5. Jamaica

  

6. Argentina

7. Belarus


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