KINGSTON, Jamaica, CMC:

In the midst of the financial crisis in the United States, Prime Minister Bruce Golding is seeking to allay the fears of local investors who are nervous they could be hit by the fallout.

Golding said that although some of the country's stocks and securities dealers may have portfolios tied up in the US financial market, he believed the exposure would be manageable.

"Based on the latest information received from the Central Bank, Jamaica's reserve position is strong with the net international reserves standing at US$2.4 billion. We do have the capacity if there is exposure. Where we need to intervene, we will be in a position to provide support," Golding said.

US legislators are considering a US$700 billion bailout of the financial sector, proposed by President George W. Bush. The rescue plan was put on the table last week after the administration expressed fears that a number of financial entities could collapse, dragging down the entire economy.

Golding pointed out that his administration had set deficit targets for this year at 4.5 per cent and up to August, the country was on track, despite the economic downturn globally.

expenditure

"The government had to reduce expenditure below what was projected in order to pick up the additional cost of oil and the impact it would have had on the domestic budget," he said.

According to Golding, who just marked his first year in office, one of the areas of disappointment was that the level of investments was below what was expected, preventing government from creating the kinds of jobs projected.