IMF reminds Jamaica of Albania’s sad example of unregulated investment schemes

TIRANA, July 7 – Last week, the International Monetary Fund (IMF) recommended that Jamaica close all unregulated investment schemes, saying they jeopardize the island’s otherwise sound financial sector.
Citing statistics from the Caribbean Policy Research Institute, the IMF’s June country report identified 35 unregulated schemes operating in Jamaica.
“Unregulated investment schemes, promising implausibly high returns in excess of 10 per cent per month, have proliferated,” said the report. “These schemes have the potential to cause social and macroeconomic instability and hurt the financial sector.”
Citing the collapse of pyramid schemes in 1990s Albania, the IMF warned of possible economic implications and social unrest should Jamaican schemes fail. (Tirana Times Staff)