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Jamaica says it will live up to IMF commitments
The Finance Minister gives that assurance as two IMF reviews have been postponed pending the resolution of certain issues.
Minister of Finance and the Public Service Audley Shaw (pictured), has sought to assure that Jamaica will live up to its commitments with the International Monetary Fund (IMF), even though two reviews of its economic performance have been postponed.
Jamaica is yet to have its third (December) and fourth (March) quarterly reviews and Shaw sought to explain that was a result of pending resolution of certain issues, including the public sector seven percent wage settlement. Additional revenue needs or expenditure cuts arising from the settlement will be outlined in a Supplementary Budget to be presented to Parliament on August 31.
The other issues Shaw highlighted were: finalization of the divestment of the Government’s shareholding in Clarendon Alumina Production (CAP); discussions on tax and tax waiver reform; and conclusion of negotiations with public sector unions on a formula for wage settlements in the medium term (2015) that is consistent with the agreed wage-to-GDP target of nine percent.
“Significant progress has been made on these issues and, with the finalization of the supplementary budget and the closing of the gap created by the decision to pay the 7 percent, the Government of Jamaica (GOJ) expects to be in a position to discuss with the IMF the date for the third and fourth Reviews,” the Minister said.
Shaw noted that it has always been the case that the European Union (EU) and other multilaterals pay attention to the economic programme of the Government with the IMF.
“The link between EU and multilateral disbursements and the IMF programme is, therefore, not new,” he said. He also noted that the review of the June quarter is not due until some six weeks after the quarter ends.
“We are confident that once the third and fourth reviews are successfully completed, all flows from all multi-laterals will be quickly disbursed,” he stated.
The Finance Minister gave an assurance that work is far advanced on the Supplementary Budget. The Estimates will be presented to Cabinet for approval by August 15, for tabling on August 31.
Source: Caribbean360
