Gov’t signs new CBD loan
Published:Monday | February 2, 2009 | 1:25 PM
The government has signed a one US$100 million loan with the Caribbean Development Bank
(CDB).
The policy based loan is the largest approved by the CDB for any of its member countries and attracts an interest rate of 4.5 percent.
The loan agreement was signed this morning at the offices of the Finance Ministry.
The funds are to be disbursed in three equal tranches.
The first is to be available on March 31 this year, the second on March 31 2010 and the third at the end of March 2011.
Finance Minister Audley Shaw, said the loan will be used to strengthen financial management in the public sector, control debt, consolidate and streamline revenue systems and enhance private sector competitiveness.
The reforms are expected to provide support for Jamaica’s medium-term fiscal and economic performance programmes and gradually assist in alleviating poverty.
CDB president Dr Compton Bourne has disclosed that an analysis of Jamaica’s growth prospects points to a number of constraints.
He said the country’s economic infrastructure is in need of upgrade, investment in health and education is insufficient and institutions, particularly in the justice sector need to be strengthened in order to effectively fight crime.
He also noted that among the CBD’s member countries, Jamaica has one of the tightest fiscal constraints outside of Guyana.
CBD loan approvals for Jamaica in 2008 amounted to almost US$160 million making Jamaica the largest recipient of CBD financial assistance.
In addition to the latest credit facility, loans were also approved for upgrading and expanding the Norman Manley International Airport, natural disaster rehabilitation of the Kingston Metropolitan Area drainage net-work, agricultural support and community investments.