IMF approves US$94m for Jamaica
Published:Friday | June 25, 2010 | 12:00 AM
The International Monetary Fund (IMF) board of directors has signed off on a disbursement of SDR 63.7 million or US$93.9 million (J$8.06 billion) to Jamaica, having finalised its review of the country's first test under the standby arrangement signed in February, the multilateral agency said Wednesday.
Following a visit in May, where the International Monetary Fund technical team, led by Trevor Alleyne, made its first-quarter assessment of Jamaica under a new borrowing arrangement, the country was said to have passed the test with relative ease.
But approval for the release of the funds was still pending from the IMF board.
"Jamaica has performed very well under the programme. All quantitative performance targets and structural benchmarks for end-March were met and prospects for meeting the end-June targets and benchmarks appear favourable," said the IMF release, following the board's decision.
"Notwithstanding an overall weak economic context, the authorities preserved programme targets on the basis of strengthened tax administration and expenditure restraint," said Naoyuki Shinohara, deputy managing director and acting IMF chair.
This disbursement brings the total lent to Jamaica under the standby arrangement to SDR 478 million or approximately US$704.6 million (J$60 billion).
The allocations will eventually reach SDR 820.5 million or US$1.2 billion over 27 months, providing Jamaica continues to meet the conditions set for the loans.
Among the pillars of the economic programme are fiscal consolidation and institutional reform, public-debt restructuring, completed as a precursor to the signing of the agreement. The country has also committed to financial sector reform to include improvement in consolidated supervision of non-bank institutions.
The second-quarter test for the three-month period ending June is to be completed and announced by August.