OREANDA-NEWS. December 18, 2015. Executive Board of the International Monetary Fund (IMF) today completed the tenth 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 28.32 million (about US\\$39.3 million). The EFF arrangement was approved on May 1, 2013 (see Press Release 13/150).

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

“The authorities continue to have an impressive track record of strong program implementation under the Extended Fund Facility. Macroeconomic stability continues to strengthen, vulnerabilities have reduced substantially, and structural reforms have progressed well.

“Jamaica has made important achievements under the economic program. Inflation and the current account deficit have fallen significantly, supported by low oil prices. Business confidence continues to be strong and private credit growth is showing signs of recovery, while public debt is falling. Nevertheless, overall growth remains weak and unemployment, though declining, remains high. Continued structural reforms should help boost investment and growth by sustainably reducing energy costs, improving financial access, and upgrading public infrastructure.

“With macroeconomic stability well-established, the recalibration of fiscal and monetary targets should help support growth and job creation. The modest relaxation of fiscal policy is intended to increase growth-enhancing capital expenditures, while continuing to protect social spending. A looser monetary stance, with a faster pace of monetary growth to create more room for private sector lending, will complement fiscal policy in supporting growth.

“Fiscal sustainability requires continued reduction in the government wage bill and safeguarding revenues. In this regard, concrete efforts are needed to modernize the public sector and improve the efficiency of public services. It is also essential to strengthen fiscal revenues by improving customs and tax administration and broadening the tax base. The liquidity injection associated with the upcoming government bond redemption provides an opportunity to reopen the domestic bond market.”