The International Monetary Fund (IMF) board has completed Jamaica’s eleventh and twelfth reviews under the Extended Fund Facility (EEF) and has approved US$80 million disbursement.
The review, which was completed on June 17, 2016, enabled the disbursement of additional funds, bringing the total disbursements under the arrangement to US$748.2 million.
The executive board approved the EFF arrangement for four years and a total of about US$948.1 million — the equivalent of 225 per cent of Jamaica’s quota in the IMF at the time of approval of the arrangement on May 1, 2013.
Following the executive board’s discussion yesterday, Mitsuhiro Furusawa, deputy managing director and acting chair, issued the following statement:
“Jamaica’s economic reform programme supported by the fund’s Extended Fund Facility has made major strides in restoring macroeconomic stability, pursuing fiscal consolidation, reducing public debt and undertaking significant tax policy reforms, building financial sector resilience, and tackling structural issues.
“Business confidence is at an all time high, while inflation and the current account deficit have been significantly reduced. The domestic bond market has reopened after the 2013 debt exchange, and private credit growth is recovering.
Furusawa said the new administration, led by Prime Minister Andrew Holness, is committed to continued fiscal discipline.
“The phased personal income tax reform launched with the FY2016/17 budget is a bold step to shift the tax system from direct to indirect taxation. Proper execution of this reform is critical to ensure revenue neutrality and safeguard the revenue base. Strengthening and better targeting conditional cash transfers will help mitigate the impact of the reform on the low-income population.
“Concrete reforms are needed to sustainably reduce the government wage bill, which continues to crowd out priority social and infrastructure spending. Actions should be expedited to divest and outsource certain government services and implement the human resource management system,” Furusawa said.
The deputy managing director and acting chair also said Jamaica’s growth remains weak and unemployment, while declining, is still high. “Further structural reforms to boost growth and employment should focus on facilitating private sector development by expanding financial access and reducing financing cost, lowering energy cost, maintaining external competitiveness, reducing tax compliance costs, and improving public sector resource allocation.”
We National Heroes dem ah turn inna dem grave :sorry Now dat di country borrow even more $$$, what measures are they going to implement to create job opportunities and boost the economy. The borrowing ting get waaay outta hand…….
Dem need fi resurrect farming and rearing of livestock, cut back pon di importation and tun up di exportation. Run out di non-Jamaicans weh deh deh ah mek big profit offa we :marah
They can’t to a large extent. Once dem teck IMF money, dem have to spent it as IMF dictates. Di money gwine use to buy di same US products. It’s a terrible slippery slope. It’s best to never take their money if you have a population wiling fi band dem belly and work wid dem govt.
Dem better brainstorm fi enter some emerging markets, and also work to fix di island’s PR problem. It is unrealistic to solely depend on tourism and remittances.
A relative just send come beg mi a money, and mi know when she ask things must stay bad. I not going JA until January so nuh sure what mi will buck eena.
It sad and gloomy bad. Seem like such a vicious cycle….
If u run dem out..our aid cut off n that source is like 99% of our money earnings! Remember Jamaica nah export or manufacture nutten too tuff!!We on the losing end of the trade deficiet with all our trading partners smh
Mi nuh mean run dem weh immediately. First we straighten out we farming/livestock business, re-vamp we furniture-making industry, and dress-making industry. Within 3 years we should be able to tell di non-Jamaicans dem weh open stores all bout ah di island fi gweh. It bun mi when mi see some coolie from India set up shop, ah sell souvenirs and ah slaughter we patois. Not tuh mention di big fat Chiney man ah Lucea weh ah run grocery store…:marah
exactly my point!,,,,,,, theese are the issues that are way more important than apple fake batty!
Wow. Under this government now its only gonna get WORST!