Jamaica passes 1st IMF test despite economic contraction

The International Monetary Fund (IMF) said Jamaica is fulfilling its loan requirements, despite its continued economic recession and concerns in other key areas. A weeklong assessment, concluded Thursday, is the first quarterly review of Jamaica's performance in meeting quantitative targets and reform agenda stipulated by the IMF Extended Fund Facility, through which 932 million U.S. dollars will be disbursed over four years. Jamaica's implementation of its economic program has been "strong" and the structural reforms have been "progressing", according to Jan Kees Martijn, head of the IMF Mission to Jamaica. "All quantitative performance and indicative targets for the end of June were met, including a floor on social spending. A budget for the current fiscal year in place (is) in line with the targets of the programme, and it is being implemented as intended." Martijn said. He said a number of legislative amendments to improve tax administration and support structural benchmarks had also been done in a timely manner. A staff report will be submitted to the IMF's Management and Executive Board for consideration and approval of the next disbursement of 30-million-U.S.-dollar funds to the island country, which is expected to take place in September. Meanwhile, Martijn said the Jamaican economy remained "weak" and growth targets remained "disappointing". He also expressed concern over rising unemployment, as well as uncertainties, particularly reticence among investors, many of whom "remain to be convinced that this programme will truly take hold." The assessment result comes a day after the Bank of Jamaica reported the country's economy remained in recession, with a fifth consecutive quarter of negative growth. Jamaica is scheduled to undergo 15 reviews over the life of the bailout programme, the primary goal of which is to reduce the country's heavy debt load from 147 percent of GDP to 96 percent by 2020.