Business
Jamaica, IMF to begin negotiations on new deal
For years, over half the government’s budget has been dedicated to paying the debt, and that has forced the government to scrimp on schools, hospitals and infrastructure.
“We’re looking forward to being useful to Jamaica but we understand that the country is led by Jamaicans and the plan has to be made by Jamaicans. Our role is to ask questions and see how this plan would be effected by developments in the international economy,” Breuer said.
Breuer warned that the global economic situation could cause “unprecedented dangers for Jamaica.”
Last week, the Washington-based IMF announced that it’s aiming to increase its financial firepower by around US$500 billion so it can issue new loans to help ease what it sees as a worsening global financial crisis.
Neither Phillips or Breuer would say whether painful austerity measures will likely have to be taken in Jamaica this year.
Phillips plans to lead a government team to Washington next month to meet with the IMF and other international partners. The IMF mission will then return to Jamaica in late February to undertake a more detailed economic evaluation. Negotiations on a new deal are expected to begin after that, according to Phillips.
Copyright 2012 The Associated Press
