Jamaica: Fifth Review Under the Extended Fund Facility and Request for Modification of Performance Criteria
IMF Staff Country Reports, September 25, 2014
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Bibliographic details
- Published: September 25, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484316160.002
Executive Summary
- Recent data show a gradual economic recovery, with growth projected to reach just over 1 percent in 2014/15.
- Inflation has trended down to about 8 percent.
- The program is on track.
- Jamaica’s four-year, SDR 615.38 million (225 percent of quota) Extended Arrangement under the EFF was approved by the IMF Executive Board on May 1, 2013.
- The first four reviews under the program were completed on schedule.
- All end- June 2014 quantitative performance criteria were met.
- The structural benchmarks for end- June were also met.
- Based on strong performance to date and the authorities’ updated policy intentions and commitments, staff recommends completion of the fifth review under the extended arrangement.
Focus of the Review
- Discussions centered on preparations for the 2015/16 budget and financial sector reforms.
- The program has been updated to support ambitious fiscal goals by:
- Strengthening tax administration.
- Enhancing public financial management.
- Containing the civil service wage bill.
- Further steps articulated to move ahead with reform of the securities dealers sector and to strengthen the financial system more broadly.
Program Status and Performance
- Progress in implementing the authorities’ program is steadily advancing with every successful review.
- Key achievements noted:
- Completion of reviews on schedule.
- Meeting all end- June 2014 quantitative performance criteria.
- Meeting end- June structural benchmarks.
- Staff recommendation: completion of the fifth review under the extended arrangement given strong performance and updated commitments.
Risks and Challenges
- Risks to the program remain relatively high:
- A delayed growth recovery could undermine social support for reform efforts.
- Financial sector vulnerabilities could become more pressing.
- Risks to external financing (including from PetroCaribe) could crystallize.
- Keeping the budget on track is challenged by risks to revenues and the wage bill.
Key Statistics and Identifiers
- Growth projection: just over 1 percent in 2014/15.
- Inflation: about 8 percent.
- Arrangement size: SDR 615.38 million (225 percent of quota).
- Approval date of Extended Arrangement: May 1, 2013.
- All end- June 2014 quantitative performance criteria: met.
- Structural benchmarks for end- June: met.
- Report date on page: September 25, 2014.
- Pages: 66
- Volume: 2014
- Issue: 295
- Series: Country Report No. 2014/295
- DOI: https://doi.org/10.5089/9781484316160.002
- ISBN: 9781484316160
- ISSN: 1934-7685
- Stock No: 1JAMEA2014003
International Monetary Fund. "Jamaica: Fifth Review Under the Extended Fund Facility and Request for Modification of Performance Criteria", September 25, 2014.