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Jamaica will receive $253 million from the International Monetary Fund.
This follows the third review of the country’s Prevention and Liquidity Line (PLL) and the Resilience and Sustainability Fund (RSF).
The IMF said the remaining $253 million would be disbursed to Jamaica immediately through the Resilience and Sustainability Fund (RSF) once the third review is completed.
The fund released a statement conducting a third review of the RSF and precautionary and liquidity lines.
The IMF said the RSF supports Jamaica’s ambitious agenda to make the economy more resilient to climate change, including reforms to accelerate the transition to renewable energy, increase resilience to climate change and strengthen the focus of policy frameworks on climate issues.
It said all RSF reform measures had been met, including climate-related fiscal risk analysis, renewable energy incentives, climate risk reporting requirements for financial institutions and a framework for green bond issuance.
The IMF also said $964 million remained available under the PPL, which the authorities continued to view as a precautionary measure.
The report said PLL supported Jamaica’s efforts to strengthen its financial regulatory, crisis resolution and AML/CFT frameworks, and that the programme’s performance remained strong.
The IMF said Jamaica continues to meet the PLL eligibility criteria.
In a review of the two loans, the IMF said Jamaica’s response to recent shocks had strengthened the credibility of the country’s fiscal and monetary policy frameworks.
It also praised Jamaica for achieving sustained economic growth and low unemployment in the last fiscal year ending in March.
The fund noted that inflation has moved back into the Bank of Jamaica’s target range of 4 to 6 percent.
The fund said that going forward, gross domestic product is expected to continue to grow and inflation should return to the middle of the target range.
However, the report noted that Hurricane Beryl posed a threat to medium-term price stability.
But potential global economic and financial shocks and natural disasters also pose risks to the economic outlook.
The IMF said Jamaica’s strong policy framework and “the authorities’ good record of managing shocks” could mitigate some of these risks.
Under the government’s medium-term fiscal framework, the IMF said public debt is expected to fall below 60% of GDP by fiscal year 2027/28.
The PLL and RSF were approved in March 2023, providing a total of $1.73 billion in support.
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