(Jamaica Gleaner) Even as discussions continue for Jamaica to resume a borrowing relationship with the International Monetary Fund (IMF), the way has been cleared for the country to get approximately US$320 million (J$28.5 billion) from the fund by early next month.
The IMF board of governors has ratified a general allocation of Special Drawing Rights equivalent to US$250 billion to provide liquidity support to the global economic system by supplementing the foreign-exchange reserves of member countries, including Jamaica.
The money is scheduled to be paid to Jamaica and other IMF member states on September 9.
This should give some well-needed space to the Bruce Golding administration, which is banking on the money from the IMF to boost the country’s foreign exchange reserve.
In fact, last month, Finance Minister Audley Shaw pointed to the money which he expected under the Special Drawing Rights as a key plank in the Government’s immediate efforts to increase the resources available to the Bank of Jamaica.
This should give the finance ministry some breathing room as preparations continue for Jamaica to request US$1.2 billion (J$106 billion) from the IMF under a stand-by agreement.
The administration is now preparing a letter of intent to request the stand-by arrangement and that should be with the fund before the annual IMF/World Bank meeting in October.
The IMF executive board had previously backed the general allocation under the special drawing rights, following a commitment made by G20 leaders at their April summit. However, that decision needed the approval of the board of governors.
The amount of money allocated to each country will be determined on August 28, in proportion to their existing quotas in the fund, based broadly on their relative size in the global economy.