Jamaica and the International Monetary Fund team have reached the advanced stages of securing a deal that allows the government to access US $1.7 billion in funds. It is to be noted that all this money will not be accessed at once and will be partitioned over a certain time period.
This deal comes under the Precautionary and Liquidity Line (PLL) and the Resilience and Sustainability Facility (RSF).
As for the PLL the deal is worth approximately US $967 million and for the RSF it’s worth US $763 million.
If the request goes through which will be decided next year, the funding will be disbursed over an 18-month period with the rate coming in at 3.8 percent.
IMF released a statement about the deals that are in discussion and what are the benefits.
The Government’s policy response to global shocks has been well designed, aiming to contain inflationary pressures, support those worst hit by the increase in the cost of living, and steadily reduce the public debt.
Their efforts have facilitated a steady recovery in growth and job creation despite the difficult global environment.
“The PLL will provide valuable insurance to the country against downside risks-including those that arise from extreme weather events-while the RSF will help support Jamaica’s ambitious agenda to increase resilience to the effects of climate change, transition to a zero-carbon economy, and catalyze official and private climate-related financing.” They stated.
