Holness reiterates call for concessionary financing for CARICOM

UNITED NATIONS (CMC):

Jamaica yesterday reiterated a call for concessionary financing for Caribbean Community (CARICOM) countries, saying that the present policy was severely hampering the socio-economic growth of the 15-member regional grouping.

Addressing the 74th session of the United Nations General Assembly, Jamaica’s Prime Minister Andrew Holness said he was compelled to reiterate the special challenges faced by highly indebted middle-income countries like those in the Caribbean.

“Although poised for economic transition, our potential is seriously constrained by having to choose between high external debt repayment and catalytic growth spending. Furthermore, the current policies that govern access to concessional financing windows do not allow us to access sufficient affordable long-term financing for SDG (Sustainable Development Goals) investment, and our capacity to mobilise public resources domestically is limited by our small size and vulnerability.”

ACCESSING FINANCIAL SERVICES

Holness said that this touched on the issue of graduation criteria, which did not take account of the range of vulnerabilities facing middle-income countries.

“Our economies face further challenges from derisking and the attendant problem of the loss of correspondent banking relations, which severely impede access to essential financial services.”

Caribbean countries have in the past warned that the lack of concessionary financing is hurting their efforts at adequately developing their economies in addition to the blacklisting by some countries, mainly European countries, which have labelled them as tax havens.

“This year, we will also launch a national tree-planting initiative, through which we will plant over three million trees in three years, representing one tree for each Jamaican,” Holness said as he addressed the issue of the impact of climate change.

“We remain committed to the reduction of the erosion of watersheds and the attendant impact on coastal ecosystems. We are partnering with others to ensure that our marine environment, on which our socio-economic survival depends, is being sustainably utilised and managed.”

Holness said that the Caribbean has “first-hand experience of the increase in intensity of hurricanes as well as intermittent increased rainfall and extended periods of droughts. These adverse weather events have resulted in major economic losses and dislocation across the region”.

He called for more action at the national and global level to urgently tackle climate change, including adequate financing and transformative and scalable programmes.