May 2013 Financial News

IMF pleased with Jamaica's progress

May 22, 2013

SENIOR INTERNATIONAL Monetary Fund (IMF) mission representative to Jamaica, Jan Kees Martijn, yesterday said the Fund is "encouraged by the steady progress being made" by the country under the extended fund facility (EFF).

"We have found a strong resolve to implement the programme and that is indeed critical because we all realise that there are serious challenges to be overcome," Martijn said following a routine visit to the island by staff of the IMF.

The IMF on May 1 approved Jamaica's application for a four-year EFF in the amount of approximately US$958 million.

On Sunday, the United Kingdom's Financial Times reported that the World Bank and the Inter-American Development Bank (IDB) - which helped to bankroll Jamaica's programme - were sceptical of its design, and Jamaica's ability to adhere to its conditions

Finance Minister Dr Peter Phillips yesterday said it is no secret that the programme is a difficult one, but said Jamaica was committed to making the necessary reforms to change the country's economic fortune.

"It is also worth pointing to the fact that whatever the apprehension that may exist in various sections of the global financial community, including the development banks, that both the IDB and the World Bank committed, with the approval of their board, substantial resources to the Jamaican programme," Phillips said.

NEED TO FULFIL OBLIGATIONS

He added: "What is incumbent on us to do now is to fulfil our obligations as a prelude to us being able to secure, not only from those institutions, but from the private markets, a long-term commitment to Jamaica's economic transformation."

The World Bank and the IDB will each lend US$510 million to Jamaica under the programme. In addition, both institutions will be providing technical support.

Under the EFF, Jamaica has committed to lowering its debt-to-gross domestic product ratio to about 96 per cent by 2020.

Martijn yesterday said fiscal discipline is critical if the country is to reduce the debt burden. He said the programme is not easy but realistic.

The IMF mission chief told journalists that the Fund stands ready to strengthen and refine the programme over time.


Source:
Daraine Luton, Senior Staff Reporter
Jamaica Gleaner
Wednesday May 22, 2013

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