3 interesting Jamaican financial facts: 1. Households heavily indebted; country heavily unbanked so implies most debt must be with those ‘better off’ & banked. 2. Remittance flows major income support 4many households. 3. Large stock of assets/income flows hidden (some illegal).

These things co-exist & mean despite woeful labour productivity, Jamaicans live better than official data suggest. (Poverty surveys tell us little that’s truly meaningful.) These 3 things do not intersect nicely, eg hidden assets don’t necessarily find those needing to borrow.

Remittances can be meaningful even to households that have/can tap hidden assets/income (in part b/c those flow to/fund illegal activities until ready to be ‘cleaned’—timing problems). Hidden assets/income found better homes in ventures (eg cars, houses) than funding households.

COVID19 forced financial rebalancing as legitimate jobs/income flows interrupted. Some hidden assets had to come into play for substience purposes as salaries stopped & remittances slowed. But indebtedness didnt take a holiday. Q: how vulnerable are indebted households?

Can they survive their debt burdens legitimately (banks have debt thresholds) and/or will they become prey to those who have built/develop hidden assets?