Jamaica: IMF Executive Board Concludes 13th Review under the EFF and Approves US$39.6 Million Disbursement

IMF News, September 19, 2016

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Canonical URL: Jamaica: IMF Executive Board Concludes 13th Review under the EFF and Approves US$39.6 Million Disbursement

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Published: September 19, 2016

Review outcome and financing

The Executive Board completed the thirteenth review of Jamaica’s program on September 16, 2016.
The review was conducted under a four-year, SDR 615.38 million (about US$932.3 million at the time of approval) arrangement under the Extended Fund Facility (EFF).
Completion of the review enables an immediate disbursement of an amount equivalent to SDR 28.32 million (about US$39.6 million).
The Board decision was made based on lapse-of-time procedures, without a formal meeting.
The EFF arrangement was approved on May 1, 2013.
Press Release No. 16/412; press release date: September 19, 2016.

Program implementation and macroeconomic performance

All quantitative performance criteria for end-June 2016, as well as the continuous quantitative program targets and structural benchmarks, were met.
Domestic confidence indicators are at an all-time high.
Improving signs of economic activity include:
- agricultural recovery,
- strong performance in tourism and manufacturing,
- increased FDI inflow,
- stronger private sector credit growth.
Real GDP growth is estimated at 1 percent for FY15/16 and is projected to reach 1.7 percent in FY16/17.
Important risks to the program remain.

Policy priorities and recommendations

Sustain higher growth dividends, job creation, and improved living standards to maintain social support for the reform agenda.
Safeguard growth-enhancing capital spending as essential for employment and job-creation.
Address constraints to financial inclusion and investment by:
- assessing banking sector competition,
- improving land titling,
- developing mobile money and agency banking services.
Use the rebalancing from direct to indirect taxes as an opportunity to improve compliance and increase incentives for production and effort.
Protect the poor and vulnerable by developing and implementing a well-designed plan to enhance Jamaica’s social protection framework to ensure inclusive and equitable growth.
Control the wage bill and reprioritize public spending to areas of highest need, including delivering public services cost-effectively and efficiently, to support a dynamic private sector.

EFF features noted in the release

The EFF is intended for countries experiencing serious payments imbalances because of structural impediments or characterized by slow growth and an inherently weak balance of payments position.
Financing under the EFF currently carries the IMF’s basic rate of charge, with a grace period of 4 years and a maturity of 11 years.

Source: IMF press release — Jamaica: IMF Executive Board Concludes 13th Review under the EFF and Approves US$39.6 Million Disbursement (Press Release No. 16/412, September 19, 2016).