Jamaica and IMF Reach Staff Level Agreement

• Jamaica and the International Monetary Fund (IMF) have reached a Staff Level Agreement that will enable the Government to access approximately US$1.7 billion under the IMF’s Precautionary and Liquidity Line (PLL) and Resilience and Sustainability Facility (RSF).
• This provision is being made at the Government’s request and forms part of the policy response to prevailing global shocks. The request is expected to be considered by the IMF’s Executive Board in early 2023.
• It will see the Government accessing approximately US$967 million under the PLL and about US$763 million through the RSF.
• The PLL will provide valuable insurance to Jamaica against downside risks, including those arising from extreme weather events, while the RSF will help support the country’s ambitious agenda to increase resilience to the effects of climate change, transition to a zero-carbon economy, and catalyse official and private climate-related financing.
• Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, in a statement, said that Jamaica is in a different era of economic development where the Government anticipates disruptive events and provides for them.
• The IMF, in a statement, said the Government’s response to the recent shocks associated with the COVID-19 pandemic has been “well designed” and “nimble” and aimed to contain inflationary pressures, support those worst hit by the increase in the cost of living, and steadily reduce the public debt. The organisation noted that the country’s efforts have facilitated a steady recovery in growth and job creation, despite the difficult global environment.

 

(Source: JIS