## IMF Executive Board Approves US$968 Million under the Precautionary and Liquidity Line and US$764 Million under the Resilience and Sustainability Facility for Jamaica

_IMF News, March 2, 2023_

## Source details

**Canonical URL:** [IMF Executive Board Approves US$968 Million under the Precautionary and Liquidity Line and US$764 Million under the Resilience and Sustainability Facility for Jamaica](https://www.imf.org/en/news/articles/2023/03/02/pr2357-jamaica-imf-executive-board-approves-usd-million-pll-usd-million-rsf)

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## Bibliographic details
- Published: March 2, 2023

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### Approvals and facility design
- 24-month arrangement under the Precautionary and liquidity Line (PLL) with access of US$968 million (190 percent of quota).
- Arrangement under the Resilience and Sustainability Facility (RSF) for US$764 million (150 percent of quota).
- RSF is expected to catalyze funding for climate priorities from other official lenders and the private sector.
- The PLL and RSF together provide insurance against global shocks and strengthen resilience to climate-related and transition risks.

### Objectives and expected uses
- PLL: provide insurance against risks from higher commodity prices, a global slowdown, tighter-than-envisaged global financial conditions, and new COVID outbreaks; support plans to improve financial supervision, the AML/CFT framework, and data reporting.
- RSF: strengthen physical and fiscal resilience to climate change, advance decarbonization of the economy, manage transition risks; create incentives to switch to renewables, reduce energy consumption, develop green financial instruments, and require proper management of climate risks in the financial sector.
- RSF reforms were prepared in close collaboration with the World Bank and other international partners and are expected to catalyze private and official financing for climate-related investment.

### Economic context and outlook
- Recent shocks: COVID, the war in Ukraine, and tightening global financial conditions.
- Recovery status: tourism has rebounded to pre-crisis levels; 2022 real GDP growth is expected to be around 4 percent.
- Inflation: pushed above the Bank of Jamaica’s target band by global factors (in particular the impact of the war in Ukraine on commodity prices) but declining since mid-2022; inflation is expected to converge to the BOJ target range by end-2023.
- External sector: high commodity prices have increased the current account deficit, but international reserves remain at healthy/adequate levels.
- Financial sector: well-capitalized and liquid.
- Outlook risks: the war in Ukraine may push commodity prices higher; a stronger-than-envisaged tightening of global financial conditions may curb capital flows and reduce remittances; new COVID variants could disrupt tourism and trade.

### Policy performance and reforms
- Fiscal policy: post-pandemic fiscal response was nimble in 2020, supporting the economy and then quickly resuming a downward path for the debt; the post-pandemic increase in the primary surplus is noted.
- Monetary policy: the Bank of Jamaica has followed a data dependent tightening of monetary policy to secure convergence to the inflation target.
- Institutional reforms underway or planned:
  - Fiscal Commission to strengthen the fiscal responsibility framework.
  - Public sector reforms to create a standardized and equitable pay structure for government employees that rewards performance.
  - Efforts to strengthen tax and customs administration to support the revenue envelope.
  - Amendments to the BOJ Act to strengthen the central bank’s autonomy and governance structures.
  - Progress in the adoption of the Basel III framework and enhancement of oversight of the financial system.

### Key statistics and exact figures
- US$968 million (190 percent of quota)
- US$764 million (150 percent of quota)
- 24-month arrangement
- 2022 real GDP growth is expected to be around 4 percent
- Inflation expected to converge to the BOJ target range by end-2023
- Fiscal policy response to COVID in 2020 noted as supportive and then followed by debt-reducing measures

*International Monetary Fund press release, March 2, 2023.*

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## References

- [Kenji Okamura](https://www.imf.org/en/About/senior-officials/Bios/kenji-okamura)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Jamaica and the IMF](http://www.imf.org/external/country/JAM/index.htm)
- [IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2023/03/02/pr2357-jamaica-imf-executive-board-approves-usd-million-pll-usd-million-rsf_