The Executive Board of the International Monetary Fund (IMF) has approved a three-year Stand-By Arrangement (SBA) for Jamaica to support the authorities’ continued economic reform agenda.
The Jamaican authorities have indicated that they will treat the arrangement as precautionary, and do not intend to draw on the new SBA unless exogenous shocks generate an actual balance of payments need.
The Executive Board approval will make about US$ 411.9 million (SDR 300.1 million) available, and the remainder in six tranches upon completion of semi-annual program reviews.
“Jamaica has established a commendable track record of program ownership and implementation under the Extended Fund Facility (EFF). Macroeconomic stability has been entrenched, evidenced by low inflation, the buildup of foreign currency reserves, and a decline in the current account deficit. Fiscal discipline and proactive debt management have helped place public debt on a downward trajectory. Still, growth is low, poverty and unemployment are high, and crime and security challenges impose a serious drag on growth,” said Mr. Tao Zhang, Deputy Managing Director and Acting Chair.
Edited by Jesus Chan
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