Jamaica: Request for Stand By Arrangement and Cancellation of the Current Extended Arrangement Under the Extended Fund Facility — Press Release and Staff Report
IMF Staff Country Reports, November 15, 2016
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- Jamaica: Request for Stand By Arrangement and Cancellation of the Current Extended Arrangement Under the Extended Fund Facility — Press Release and Staff Report
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Bibliographic details
- Authors: Arrangement, Cancellation
- Published: November 15, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475553369.002
Overview
- The paper discusses Jamaica’s Request for Stand By Arrangement (SBA) and the Cancellation of the Current Extended Arrangement Under the Extended Fund Facility (EFF).
- IMF staff supports the request for the precautionary SBA given the country’s recent track record and the authorities’ commitment to reforms and maintaining an open dialog with the IMF.
Macroeconomic outcomes and indicators
- Public debt reduced by more than 25 percent of GDP since the start of the extended arrangement under the EFF.
- Macroeconomic stability indicators cited as becoming entrenched:
- Low inflation.
- Buildup of foreign currency reserves.
- Decline in the current account deficit.
Fiscal discipline and debt management
- Fiscal discipline and proactive debt management are credited with the reduction in public debt.
- Continued emphasis on maintaining fiscal discipline is implied as central to sustaining the gains achieved under the EFF.
Structural reforms and growth prospects
- Important reforms are being undertaken to unlock Jamaica’s growth potential.
- Reforms combined with macroeconomic stability are presented as the foundation for stronger future growth.
IMF assessment and policy stance
- In view of Jamaica’s recent track record and the authorities’ reform commitments, IMF staff supports a precautionary Stand By Arrangement.
- The support is framed as contingent on continued reform implementation and ongoing dialogue between the authorities and the IMF.
Jamaica: Request for Stand By Arrangement and Cancellation of the Current Extended Arrangement Under the Extended Fund Facility — Press Release and Staff Report