Shaw gets approval to go to IMF

[Lazie]

Minister of Finance, Audley Shaw, has announced that Cabinet has granted him permission to return to the International Monetary Fund (IMF).

Cabinet yesterday authorised that Minister of Finance, Audley Shaw make a formal application to borrow up to 300 per cent of quota (US$1.2 billion) from the IMF's stand-by facility.

This was announced by Shaw during a presentation that is currently taking place. "Jamaica has no real option at this time but to return to a borrowing relationship with the IMF," Shaw said.

Updates on this story will follow shortly.

[Lazie]

'No alternative than to resume IMF borrowing' - Shaw


JamaicaObserver.com
Posted: 7/21/2009 2:58:53 PM

SPEAKING in Parliament today Minister of Finance Audley Shaw announced that Jamaica is going to resume its borrowing relationship with the International Monetary Fund with a formal application to be submitted mid-August, to be reviewed by the IMF when its board meets again at the beginning of October.

Jamaica is to apply for 300 per cent of its special drawing rights (SDR) from the IMF valued at US$1.2 billion over the next three years.

Shaw said that the Jamaica Labour Party (JLP) administration had no alternative but to seek IMF assistance given the recession and a shortfall in government revenue.

However he argued that the support would be granted on a more favourable basis than in the past with an IMF team visiting Jamaica next week to continue negotiations.