WASHINGTON, D.C.: Following Monday’s announcement that the Board of the International Monetary Fund (IMF) will be asked to approve a US$900 million dollar facility for Jamaica, the World Bank and the Inter-American Development Bank (IDB) have approved a preliminary allocation of US$510 million each over the next four years to be committed towards a proposed new Extended Fund Facility with Jamaica.
Announcing the financing in a joint statement issued Monday in Washington D.C., where both institutions are headquartered, the World Bank and the IDB commended Jamaica for having “taken the bold decision to tackle the structural impediments to growth that have hindered its development for decades”.
“The IDB and the World Bank are expediting implementation of important on-going projects that will improve growth, protect Jamaica’s most vulnerable and increase fiscal stability,” the statement said. “The IDB and the World Bank share the high priority assigned by the government to restoring macroeconomic stability and recognize the significant steps already taken to achieve this. The two multilateral institutions stand ready to accompany the government’s efforts to bring about sustained growth to the benefit of all its citizens.”
The announced new financing, which is pending approval by the respective Boards of Directors of the World Bank and the IDB, also recognizes the decision by the IMF management to present to its Board its proposal for a new Extended Fund Facility with Jamaica, describing the IMF’s new allocation as “an important reflection of that institution’s confidence in Jamaica’s macroeconomic stabilization program”.
The World Bank-IDB announcement comes as the IMF also announced that it will recommend to its board that Jamaica’s loan application be approved. The IMF issued a statement acknowledging that the Government of Jamaica had now confirmed “that all prior actions have been met”.
The World Bank has recently started a series of consultations with Jamaican authorities on a new Country Partnership Strategy (CPS) to be launched later this year. The new CPS will be designed to support the country’s efforts to increase economic growth, create jobs and fight poverty.
Since the global financial crisis hit Jamaica in 2008/2009, the World Bank and its private sector arm, the International Finance Corporation (IFC), have provided more thanUS$800 million for social, human development and fiscal management projects, as well as natural disaster risk management and private sector development.
“The IDB has long been committed to its partnership with Jamaica,” the joint statement said. “Since the onset of the international financial and economic downturn in 2008, the IDB has approved US$1.6 billion in loans and US$10.4 million in non-reimbursable technical assistance to Jamaica.”