IMF ready to help Jamaica following Hurricane Melissa if needed

Deputy Managing Director at the International Monetary Fund (IMF) and Jamaica's former Minister of Finance, Dr Nigel Clarke, says while Jamaica is well prepared, the Fund stands ready to support recovery if needed following the passage of the devastating Category 5 Hurricane Melissa.

"Hurricane Melissa has left deep scars on my beloved Jamaica & across the Caribbean - families displaced, livelihoods destroyed, and communities left in pain. My thoughts are with all affected," Clarke wrote on social media platform X.

He was echoing semntiments expressed by Managing Director of the IMF Kristalina Georgieva.

Georgieva wrote on X, "My heart goes out to those across the Caribbean affected by Hurricane Melissa. The loss of lives and devastation are heartbreaking."

"The Fund stands ready to help as countries begin the path to recovery after this tragic event," she added.

On Thursday, Finance Minister Fayval Williams outlined the layers of disaster risk funding Jamaica could draw on, based on the level of damage sustained.

She said $5.3 billion was available immediately from the Contingency Fund. There’s also the National Disaster Reserve Fund with $1 billion in it, although she said there are conditions which apply.

"We do have two insurance policies Caribbean Catastrophe Risk Insurance Facility (CCRIF) and the coverage there for tropical cyclone is US$91.6 million and for excess rainfall the coverage is US$37.3 million. Of course those are also parametric insurance, meaning preset conditions and those will be calibrated and we will get information on whether or not there will be a payout from that insurance," she said.

Jamaica also has the Catastrophe Bond through which it could access US$150 million, if triggered. Williams said her ministry has received word on teh status of that arrangement, but she would need to discuss the details with Cabinet before making a public statement.

In addition, Jamaica has the option of accessing a contingent credit facility from the Inter American Development Bank (IDB) totalling US$285 million.

"So you can see if the layers are exhausted, you can see how we can continue to the next layer," Williams said.

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