IMF resident rep here
Published:Sunday | June 13, 2010 | 12:00 AM
GeneLeon,senior resident representative of the International Monetary Fund (IMF), has signalled the Fund's willingness to entertain discussions with the Government about the recent civil unrest in west Kingston that could affect the Government's meeting its obligations with the IMF.
Leon, the newly appointed resident representative to Jamaica, made the disclosure while address- ing a press conference on Friday evening, where it was announced that as of tomorrow, the IMF's resident representative's office would start operating from the premises of the Bank of Jamaica.
"I am sure if the authorities did relate to the Fund that there were issues to be discussed relating to the event, then surely the Fund would be willing to entertain such a discussion," he said, while ans-wering questions from journalists on the likely impact the recent civil unrest would have on Jamaica's IMF agreement.
Leon was, however, quick to point out that this "is always a dialogue between the IMF and the authorities, and it's always with a view to meeting the objectives set, and the objective set is one of economic stability, both price and growth, and overriding financial stability."
Three weeks ago, there was a virtual lockdown of the country's capital as the security forces battled gunmen from western Kingston. Already, the country's tourism industry has indicated a US$350 million fallout in revenue, and the business district is indicating a loss in revenue due to the unrest.
The Government recently approved US$10 million (J$880 million) for the tourism ministry to embark on a massive public-relations campaign to repair Brand Jamaica. But the Gover-nment indicated that the moneywouldcomefromthe Tourism Enhancement Fund and support from stakeholders.
Financial analysts have, however, downplayed the impact that the events in May will have on Government's fiscal targets.
"There is no major impact. The two or three days of production lost is less than one percentage point of GDP, nominally about $12 billion or so, which is negligible," said financial analyst John Jackson in a previous interview with The Gleaner.
Last month, at its first quarterly review by the IMF, the country met, with relative ease, all its quantitative performance criteria without the need for waivers.
Jamaica's next second-quarter review - for assessment of the three-month period up to June - is to be released by August.
It is the first time in 15 years the country will have an IMF resident office here. Leon said it is "usual practice for the IMF to establish a resident office in countries with a Fund programme, and Jamaica is no exception".
He said the office would serve as a focal point through which the Fund's key operations of policy advice, lending and technical assistance would be coordinated.
"My main responsibility will relate to the provision of technical and policy advice to the Jamaican authorities on the implementation of the Standby Arrangement with the Fund," he said.
He further added that the office would also be a source of information on global economic and financial developments and on the Fund's views on global economic issues.