Press Release No. 13/523

Press Release: IMF Completes Second Review under the Extended Fund Facility Arrangement with Jamaica and Approves US$30.8 Million Disbursement

December 18, 2013

The Executive Board of the International Monetary Fund (IMF) today completed the second review of Jamaica’s economic performance under a program supported by an Extended Fund Facility (EFF) arrangement. The completion of this review enables the disbursement of SDR 19.97 million (about US$30.8 million), which would bring total disbursements under the arrangement to SDR 176.69 million (about US$272.2 million).

The Executive Board approved the EFF arrangement for four years and a total of SDR 615.38 million (about US$948.1 million, the equivalent of 225 percent of Jamaica’s quota in the IMF) (see Press Release No. 13/150) on May 1, 2013.

Following the Executive Board’s discussion, Mr. Nayouki Shinohara, Deputy Managing Director and Acting Chair of the Board, said:

“Overall program implementation under the Extended Fund Facility remains strong, and there are tentative signs of a gradual economic recovery. All quantitative performance targets for end-September were met, including the floor on social spending, and structural reforms are proceeding steadily. The execution of the 2013/14 budget has remained broadly on track.

“The next phase of the program focuses on structural reforms to strengthen the fiscal policy framework. The main priorities include the adoption of an effective fiscal rule to entrench fiscal discipline and consolidate the gains of fiscal consolidation in the medium term, the implementation of a comprehensive tax reform, and PFM reforms including strengthening budget preparation and the procedures for budget execution and cash management.

“Advancing the reforms of the securities dealers sector is essential to strengthen financial stability. Frequent and in-depth monitoring of the financial system to make the sector more resilient is also essential.

“Achieving inclusive growth and enhancing the effectiveness of social protection are central components of the authorities’ reform program. The growth agenda needs to be bolstered by speeding up structural reforms that reduce bureaucracy and improve the government’s interface with the business community, in close collaboration with development partners.”