IDB Commits US$75Mn to Boost Jamaica’s COVID-19 Response

• Jamaica’s capacity to combat the coronavirus pandemic has been further boosted through a US$75Mn loan commitment from the Inter-American Development Bank (IDB).
• According to the IDB communiqué, the provision is earmarked to strengthen the efficiency and effectiveness of public policy and fiscal management, in response to the health and economic crises resulting from COVID-19.
• The allocation is intended to promote the availability and timely execution of public resources to respond to the pandemic. It will strengthen the countercyclical effect of fiscal policy through the introduction of temporary measures to protect the income of vulnerable households and increase liquidity for businesses during the crisis.
• The loan is also intended to promote post-COVID-19 economic and fiscal recovery. It will help finance cash transfers to employees, grants to low-income informal workers, vulnerable groups, and the unemployed, and provide student loan relief. Additionally, it is aimed at supporting small-business grant programs, especially in the tourism sector, and measures to strengthen fiscal institutions to improve efficiency and transparency of public investment.

(Source: JIS)