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IMF decision by next month - Prime minister to meet with Opposition and other social partners today
Published: Thursday | June 25, 2009
Arthur Hall, Senior Staff Reporter
It now appears certain that it is a matter of 'when', and not 'if', Jamaica will resume a borrowing relationship with the International Monetary Fund (IMF), despite protestations from the Government that no decision has yet been made.
In fact, the country could know before the end of next month the terms of the new agreement with the international agency.
Prime Minister Bruce Golding and Finance Minister Audley Shaw are to meet with representatives of the private sector, the trade unions and the Opposition today for what the Government claims are further exploratory talks.
However, indications from the Golding administration are that the Government will be seeking support for its move rather than a discussion on whether the country should return to bed with the organisation.
Funding arrangement
"The Government is to consult the social partnership group on the IMF engagement .... on the terms under which Jamaica should enter into a funding arrangement with the International Monetary Fund," Daryl Vaz, minister with responsibility for information, told a post-Cabinet media briefing at Jamaica House yesterday.
Vaz denied that a decision had been made but admitted that the Government was looking at the IMF's standby facility.
"What they (the Cabinet) mandated the Ministry of Finance to do is to continue the exploratory discussions with the IMF," he said.
"Whether or not they will go back to the IMF is all dependent on what comes out of these discussions in relation to the specific terms, which is what has to be nailed down so that the Government of Jamaica clearly understands what it would mean to the Government and people of Jamaica for a return to the IMF."
However, with Shaw already indicating that the Government is struggling to finance its $555.7 billion budget because of the fallout in revenue from the big ticket items - bauxite and tourism - it seems his visit to Washington next month will be the first step in a dance that will culminate with Jamaica back in an agreement with the IMF.
Shaw presented an outline of the IMF scenario to his Cabinet colleagues on Tuesday and, while details of his submission have not been released, sources say the finance minister made the case for a resumption of the borrowing relationship, which Jamaica ended in the late 1990s after more than two decades.
"The Ministry of Finance team is scheduled to visit Washington next week, followed by an IMF team to be in Jamaica some time the following week and, of course, Cabinet is to be updated on these discussions and deliberations some time around the 20th of July," Vaz said.
This means the country could know the Government's decision before the end of next month.
arthur.hall@gleanerjm.com
http://www.jamaica-gleaner.com/glean...ead/lead3.html
Published: Thursday | June 25, 2009
Arthur Hall, Senior Staff Reporter
It now appears certain that it is a matter of 'when', and not 'if', Jamaica will resume a borrowing relationship with the International Monetary Fund (IMF), despite protestations from the Government that no decision has yet been made.
In fact, the country could know before the end of next month the terms of the new agreement with the international agency.
Prime Minister Bruce Golding and Finance Minister Audley Shaw are to meet with representatives of the private sector, the trade unions and the Opposition today for what the Government claims are further exploratory talks.
However, indications from the Golding administration are that the Government will be seeking support for its move rather than a discussion on whether the country should return to bed with the organisation.
Funding arrangement
"The Government is to consult the social partnership group on the IMF engagement .... on the terms under which Jamaica should enter into a funding arrangement with the International Monetary Fund," Daryl Vaz, minister with responsibility for information, told a post-Cabinet media briefing at Jamaica House yesterday.
Vaz denied that a decision had been made but admitted that the Government was looking at the IMF's standby facility.
"What they (the Cabinet) mandated the Ministry of Finance to do is to continue the exploratory discussions with the IMF," he said.
"Whether or not they will go back to the IMF is all dependent on what comes out of these discussions in relation to the specific terms, which is what has to be nailed down so that the Government of Jamaica clearly understands what it would mean to the Government and people of Jamaica for a return to the IMF."
However, with Shaw already indicating that the Government is struggling to finance its $555.7 billion budget because of the fallout in revenue from the big ticket items - bauxite and tourism - it seems his visit to Washington next month will be the first step in a dance that will culminate with Jamaica back in an agreement with the IMF.
Shaw presented an outline of the IMF scenario to his Cabinet colleagues on Tuesday and, while details of his submission have not been released, sources say the finance minister made the case for a resumption of the borrowing relationship, which Jamaica ended in the late 1990s after more than two decades.
"The Ministry of Finance team is scheduled to visit Washington next week, followed by an IMF team to be in Jamaica some time the following week and, of course, Cabinet is to be updated on these discussions and deliberations some time around the 20th of July," Vaz said.
This means the country could know the Government's decision before the end of next month.
arthur.hall@gleanerjm.com
http://www.jamaica-gleaner.com/glean...ead/lead3.html
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