Jamaica & IMF Reach Staff Level Agreement

The International Monetary Fund (IMF) has just issued a release that they have reached some level of agreement with the Jamaican Government.

Key Elements

Period: 48-month arrangement under the Extended Fund Facility (EFF)
Funding: SDR479 million (about US$750 million or 175 percent of quota)
When: Staff envisages that the IMF’s Executive Board would consider the proposed arrangement under the EFF by the end of March

The release also stated

“The mission has reached a staff-level agreement with the Jamaican authorities on the key elements of an economic program that can be supported by a 48-month arrangement under the Extended Fund Facility (EFF), in the amount equivalent to SDR479 million (about US$750 million or 175 percent of quota). We have agreed on understandings that are reflected in the authorities’ economic program, as stated in the Letter of Intent that will be reviewed by IMF Management and finalized before the agreement is approved. Staff envisages that the IMF’s Executive Board would consider the proposed arrangement under the EFF by the end of March, subject to the timely completion of prior actions to be taken by the Jamaican government and obtaining necessary financing assurances.

“The authorities have announced a debt exchange that, along with the fiscal adjustment and structural reform measures in the economic program, will help reduce Jamaica’s medium-term financing needs and contribute to debt sustainability. In addition to continued support from international financial institutions and other official creditors, the success of the authorities’ program will depend critically on a high rate of participation of private creditors in the debt exchange. All these elements will help secure financing assurances for a Fund-supported program.

Full Release

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