Jamaica has passed the first three quarterly performance tests required by the 27-month Stand-By Agreement with the International Monetary Fund (IMF) signed in January 2010. The US$1.27-billion loan is disbursed in tranches subject to meeting the conditionalities of the Agreement. To get the loan request approved and receive the first drawdown of approximately US$610-million, the government had to take “prior actions” in the form of imposing a tax package equivalent to 2% of GDP in December 2009, completing the Jamaica Debt Exchange (JDX), and selling Air Jamaica, both by January 2010.
On Wednesday, September 22, 2010, The Mona School of Business will be hosting a lecture by Dr. Auguste Kouame from the World Bank on the topic "Jamaica and the World Bank's Development Policy Loans, 2009 to 2011- Recession, Restructuring, Reform". The presentation will commence at 6 p.m. in the Executive Lecture Theatre of the Alister McIntyre Building.
The Jamaican Economy in a dollarised situation, using the US Dollar as the anchor currency, would adopt conditions conducive to economic stability and growth. However, fundamental change in the current arrangement may be premature at this stage.
In the current climate in Jamaica, the involuntary exchange of bonds to lower yielding instruments caught the Jamaican financial sector and other stakeholders unprepared. This is clear evidence of the inadequacies in regulatory oversight and risk management discipline, both at the level of the financial institutions themselves and the local regulatory authorities.
Jamaica has passed the first three quarterly performance tests required by the 27-month Stand-By Agreement with the International Monetary Fund (IMF) signed in January 2010. The US$1.27-billion loan is disbursed in tranches subject to meeting the conditionalities of the Agreement. To get the loan request approved and receive the first drawdown of approximately US$610-million, the government had to take “prior actions” in the form of imposing a tax package equivalent to 2% of GDP in December 2009, completing the Jamaica Debt Exchange (JDX), and selling Air Jamaica, both by January 2010.
The Jamaican Economy in a dollarised situation, using the US Dollar as the anchor currency, would adopt conditions conducive to economic stability and growth. However, fundamental change in the current arrangement may be premature at this stage.
In the current climate in Jamaica, the involuntary exchange of bonds to lower yielding instruments caught the Jamaican financial sector and other stakeholders unprepared. This is clear evidence of the inadequacies in regulatory oversight and risk management discipline, both at the level of the financial institutions themselves and the local regulatory authorities.