KINGSTON, Jamaica, Prime Minister Andrew Holness says consideration by the International Monetary Fund (IMF) of Jamaica’s request to access the Resilience and Sustainable Facility (RSF) and the Precautionary and Liquidity Line (PLL), signals the strength of the fundamentals of the island’s economy.
Jamaica and the IMF have reached a Staff Level Agreement that will enable the Government to access approximately US$1.7 billion.
Under the RSF, Jamaica can access up to US$763 million at an interest rate of approximately 3.8 percent with a repayment period of 20 years and no principal repayment for the first ten years.
“This is amazing. The countries that qualify for this will be countries with strong economic fundamentals,” Holness told the launch of the Qantas Financial Group, saying that his administration had also decided to access the PLL as insurance against various shocks. Under the PLL, Kingston can obtain up to US$967 million.
“So, although we have enough reserves, the Government is being prudent,” Holness said.
“We are taking out this insurance policy nonetheless, which further strengthens the fiscal output, how the Government is perceived, and how investors perceive current and future conditions. So, in the event of any shocks to our economy, we have enough buffers in place to maintain stability,” he added.
Holness said Jamaica continues to experience strong economic recovery from the effects of the coronavirus (COVID-19) pandemic, expanding by 5.9 percent in the third quarter of the financial year, representing the sixth consecutive quarter of growth.
In addition, he said the unemployment rate is at its lowest in the country’s post-independence history, possibly attaining close to full employment in another two years.
Holness said these factors are strong indicators of the country’s resilience, even in the face of the pandemic and the increased shipping and supply chain prices.
He said the resurgence of Jamaica as a vital economic player in the region has begun, and the country is poised for increased growth and development.
“Government policy is working, creating the basis and the opportunities for firms and entrepreneurs to take risks, invest, and continue to grow our economy,” Holness added.
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