Press Release No. 14/598

Press Release: IMF Executive Board Completes Sixth Review Under the Extended Fund Facility for Jamaica and Approves US$ 67 million Disbursement

December 19, 2014

The Executive Board of the International Monetary Fund (IMF) today completed the sixth review of Jamaica’s economic performance under the program 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 completion of the review enables an immediate purchase of an amount equivalent to SDR 45.95 million (about US$67 million). The EFF arrangement was approved on May 1, 2013 (see Press Release 13/150 ).

Following the Board discussion of the review, Mr. Naoyuki Shinohara, Deputy Managing Director, and Acting Chair made the following statement:

“The authorities’ commitment to the program under the Extended Fund Facility has remained strong. Fiscal performance was broadly on track and all quantitative performance targets for end-September were met. Structural reforms have progressed on schedule.

“Macroeconomic performance under the program continues to be good and growth is showing signs of picking up. Wide-ranging actions to boost growth and employment are nonetheless critical for the success of the program. While the ongoing economic stabilization and debt reduction are essential pillars of the growth strategy, reforms to enhance the business climate should be accelerated—including by cutting red tape, reforming the energy sector, and making the public sector more client-oriented.

“Achieving the program’s ambitious fiscal goals on a sustained basis will require further actions to strengthen public financial management and revenue administration, and to contain the wage bill. The preparation of the 2015/16 budget offers an opportunity to strengthen the quality of the fiscal adjustment, including by advancing public sector reform. These efforts will help provide additional resources for priority budgetary outlays.

“Expeditious implementation of the plans for financial sector reform, including by bringing into effect the Banking Services Act and the new framework for repo transactions, combined with strong contingency planning and resolution frameworks, will improve the soundness of the financial system.”