Posted by: youngragingbull | April 9, 2013

Jamaica could receive up to $958M in aid: IMF

The International Monetary Fund announced late Monday that debt-ridden Jamaica could receive up to $958 million in a four-year loan package to stabilize the Caribbean country’s failing economy.

In a statement, the IMF said it will recommend this new “extended fund facility” for the island to its executive board, which is expected to consider officially approving the deal at a meeting before the end of April.

The IMF said Jamaica has successfully met all mandated prior actions. It says the success of a new program depends on Jamaica’s strengthening of public finances, approving a set of reforms, and debt sustainability, among other measures.

“Recognizing the sacrifice involved for the Jamaican people, the strategy also aims to minimize the impact on the poorest and most vulnerable,” the IMF statement said.

Jamaica’s debt load is currently over 140 percent of gross domestic product; approximately 55 percent of government spending goes to servicing the debt with less than 20 percent available for social programs once wages for public servants is drawn.

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Responses

  1. SIDE NOTE: Shortly after the IMF’s announcement about reaching a pending agreement with Jamaica, the World Bank and the Inter-American Development Bank said they have each preliminarily allocated $510 million in financing over the next four years for the island, supplementing the support provided by the IMF.

    Since the global financial crisis started in 2008, the World Bank and its private sector arm have provided roughly $800 million to Jamaica. The IDB has approved $1.6 billion in loans in that time.


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