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WASHINGTON, D.C. CMC – The International Monetary Fund (IMF) Monday, approved a disbursement of US$30.6 million for Jamaica after completing the first review of the island’s performance under a multi-million dollar economic program.
The IMF earlier this year approved a four-year US$944 million Extended Fund Facility (EFF) arrangement with Jamaica and according to the Washington-based financial institution, the completion of the review enables the disbursement of US$30.6 million “which would bring total disbursements under the arrangement to US$240.4 million.
IMF deputy managing director, Nayouki Shinohara, said overall program implementation under the EFF “has been strong, despite the weak economic environment.
“The authorities’ continued commitment to the program objectives of strengthening Jamaica’s fiscal position and creating the conditions for sustained economic growth will be critical to a revival of investor confidence and domestic demand in the period ahead.”
He said the program for the remainder of fiscal year 2013/14 would focus on structural reforms to strengthen the fiscal framework.
“Priorities include the enactment of an effective fiscal rule to lock in the gains from the fiscal adjustment thus far, and a comprehensive tax reform to broaden the tax base and reduce distortions. An expected short delay in submission to parliament of a new law on tax incentives should not postpone its enactment.”
Shinohara said achieving broad-based growth and enhancing social protection were central pillars of the Jamaica economic program.
“The growth agenda should be bolstered by further actions to enhance the business environment and support well-targeted public investments, in close collaboration with development partners.
“Close monitoring of the financial system remains essential to forestall the emergence of vulnerabilities following February’s restructuring of the public debt. A comprehensive reform of the securities dealers sector would also be important for safeguarding financial stability,” he added.
