KINGSTON: The Ministry of Finance and Planning announced in a statement that Jamaica has successfully completed the seventh International Monetary Fund review, and is now eligible to receive a further US$39 million.
The review was completed today March 30, by the Executive Board of the IMF, who reviewed Jamaica’s economic performance under the programme supported by a four-year, SDR 615.38 million (about US$932 million at the time of approval) arrangement under the Extended Fund Facility (EFF).
The Deputy Managing Director and Acting Chair, Mitsuhiro Furusawa, following the Board discussion of the review said, “The authorities’ commitment to the programme under the Extended Fund Facility remains strong. Programme performance is on track and all quantitative performance targets for end-December were met. Structural reforms have progressed broadly on schedule.”
“Macroeconomic performance continues to be good and economic confidence has reached a two-year peak. The decline in oil prices should help lower inflation expectations and boost demand. Still, stepping up the pace of reforms is essential to boost growth and employment. Bold efforts are needed to reform the energy sector, improve the business climate, and advance investment in critical infrastructure,” the acting chair continued.
“The budget for 2015/16 demonstrates Jamaica’s continued fiscal discipline and will help keep public debt on a sustainable path,” he said. “Maintaining the momentum for fiscal consolidation over the medium term requires boosting revenue and improving public sector efficiency. This involves strengthening customs and tax administration and further broadening the tax base. It is also essential to improve public financial management, accelerate the reform of the public sector, and contain public sector wage costs.”
Furusawa added: “Buttressing the financial sector hinges on meeting the key milestones for reforming the retail repo sector. Completing the transition of the retail repo businesses to a trust-based framework requires careful management. Implementing the Banking Services Act will be a necessary step to improve financial sector stability further.”
