Jamaica closer to IMF deal

The standby facility is being negotiated with the IMF in the face of a fall-off of some US$1 billion in the Golding administration's revenue and foreign exchange earnings, consequent on the global economic downturn impacting key sectors such as bauxite a

KINGSTON, Jamaica, December 10, 2009 – The Jamaica government is reportedly closer to reaching a deal for US$1.2 billion from the International Monetary Fund (IMF).

An IMF team arrives in the island today to continue negotiations on the US$1.2 billion standby facility. However, there is still no word on when an announcement of the final arrangements will be made.

Minister with Responsibility for Information, Telecommunications and Special Projects in the Office of the Prime Minister, Daryl Vaz, said that the negotiations were "far advanced".

But he could not say whether the impending meeting would result in a conclusion of the arrangements.

"I would not be in a position to tell you that the Minister of Finance (and the Public Service) would be in a position to make (details of) the agreement known in Parliament next week Tuesday,” he said.

“But what I could say is that, if he does not, because it has not reached finality, then he would then be in a position to tell us where we are.”

Responding to a question regarding Prime Minister Bruce Golding's undertaking to provide an update on the status of the discussions before Christmas, Vaz pointed out that "the fact that the IMF team arrives here (Thursday) afternoon, after protracted negotiations, indicates that that is still on the cards".

The standby facility is being negotiated with the IMF in the face of a fall-off of some US$1 billion in the Golding administration's revenue and foreign exchange earnings, consequent on the global economic downturn impacting key sectors such as bauxite and tourism.