## Press Release: IMF Executive Board Concludes Second Review Under Stand-By Arrangement with Jamaica and Approves US$49.2 Million Disbursement

_IMF News, September 24, 2010_

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## Bibliographic details
- Published: September 24, 2010

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### Review outcome and disbursement
- The Executive Board concluded the second review of Jamaica’s economic performance under the Stand-By Arrangement (SBA).
- Completion of the review enables the immediate disbursement of an amount equivalent to SDR 31.9 million (about US$49.2 million).
- Total disbursements under the arrangement to date: SDR 509.9 million (about US$786.2 million).

### Program performance and compliance
- "The program performance continues to be positive, with all end-June quantitative performance criteria met and all but one structural benchmark completed, owing to circumstances beyond the Jamaican authorities control."
- Key macro outcomes and risks noted by management:
  - Inflation is declining more rapidly than projected.
  - Market confidence has improved, with interest rates falling to their lowest levels in many years.
  - Incipient signs of a recovery; projected that growth will turn positive in the second half of the fiscal year.
  - Fiscal performance remains on track with all quantitative performance targets met.
  - Risks remain from the uncertain external economic environment, Jamaica’s still high debt level, and susceptibility to external shocks.
- Policy emphasis: continued expenditure restraint, especially on the wage bill, is critical for meeting short-term fiscal targets and ensuring a shared burden of the fiscal adjustment.

### Program design and pillars
- The IMF’s Executive Board approved a 27-month SBA in an amount equivalent to SDR 820.5 million (about US$1.27 billion; 300 percent of quota) on February 4, 2010 (see Press Release No. 10/24).
- Program pillars include:
  - Fiscal consolidation and institutional reform, including fiscal responsibility legislation and Central Treasury Management.
  - Public debt restructuring, which was completed as a prior action under the program.
  - Financial sector reform, including measures to improve consolidated supervision and the regulation of non-banks.

### Structural and financial sector reforms — progress and priorities
- Noted progress:
  - Divestment of the Sugar Company of Jamaica.
  - Completion of action plans for tax administration and central Treasury management reforms.
- Priorities and recommendations:
  - Ensure ongoing plans for public sector rationalization and tax incentives reform deliver gains in fiscal savings and economic efficiency.
  - Continue reforms aimed at strengthening prudential requirements and the overall supervisory framework in the financial sector.

### Statement by Mr. Murilo Portugal, Deputy Managing Director and Acting Chair
- Quoted assessment:
  - "Overall performance under the Stand-By Arrangement continues to be positive."
  - Emphasized the need for "continued vigilance" given remaining risks.
  - Reiterated importance of expenditure restraint and of further structural reforms to resolve underlying economic imbalances and strengthen the basis for strong and sustained growth.
  - Confirmed that financial sector reforms "are proceeding satisfactorily."

*Press Release No. 10/353, September 24, 2010.*

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## References

- [Jamaica and the IMF](http://www.imf.org/external/country/JAM/index.htm)
- [Portugal and the IMF](http://www.imf.org/external/country/PRT/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No. 10/24](https://www.imf.org/external/np/sec/pr/2010/pr1024.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr10353_