Final discussion of IMF letter of intent for Jamaica in days

Shaw also noted that with the completion of the Letter of Intent, a decision by the IMF Board could be just weeks away. (File photo)

KINGSTON, Jamaica, January 7, 2010 – Jamaica’s Letter of Intent to access a US$1.2 billion loan from the International Monetary Fund (IMF) was expected to be completed yesterday, bringing the institution’s response to the request a step closer.

"The essential Letter of Intent…will be submitted to Cabinet this weekend for the complete deliberation of all members of Cabinet looking at every aspect of this very detailed and comprehensive document, which basically sets out the parameters of the medium-term programme, the economic framework going forward over the next four to five years," said Minister of Finance and the Public Service, Audley Shaw.

He said the matter will come before the January 19th sitting of the House of Representatives, at which time the country will learn the details of the medium-term economic programme.

Shaw also noted that with the completion of the Letter of Intent, a decision by the IMF Board could be just weeks away.

"Once a Letter of Intent is finalised, it means that the middle management authorities at the IMF have basically agreed with the main elements of it, and so what happens afterward is that it has to go to a high level management review and then to the Board," he explained.

Jamaica is seeking the standby loan facility from the IMF, due to severe erosion of its foreign exchange earnings, especially in terms of bauxite/alumina exports and remittances from Jamaicans overseas.