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IMF accord - moving target!
Published: Saturday | November 7, 2009
THERE ARE are fresh concerns today that the Government will not meet its end-of-November timetable for a US$1.2 billion stand-by agreement with the International Monetary Fund (IMF).
After 11 days in the island, an IMF team left yesterday with a brief statement on the state of the discussion; but this left the nation no clearer on when an agreement will be reached.
"The IMF appreciates the significant challenges faced by Jamaica and is working closely with the authorities in support of their efforts to formulate a plan to overcome these challenges," Trevor Alleyne, chief of the IMF's Caribbean division, said.
According to Alleyne, the IMF team held discussions with Prime Minister Bruce Golding, Finance Minister Audley Shaw, and senior officials of the finance ministry and the central bank during its visit.
"The focus of the discussions has been on the appropriate set of policy measures for both the short and medium term that would credibly address the key macroeconomic imbalances and thus help set the stage for robust economic growth," said Alleyne.
He added: "In particular, this has meant a focus on how to reduce the large fiscal deficit and put the debt on a clear downward path. In this regard, marked progress has been made during this mission".
close contact
Alleyne said the IMF and the Jamaican authorities would continue to be in close contact, and discussions were expected to continue next week at the fund's headquarters in Washington.
But financial analyst Anne Shirley said the signal from the IMF is that the agreement would take much longer than initially scheduled.
"The November time line will not be met, and the country should have seen that since the dismissal of central bank governor Derick Latibeaudiere," Shirley told The Gleaner. "We will now have to wait to go to the multi-laterals, and the issue of how to deal with the debt is back on the table for discussion," Shirley added.
Thanks to Anne Shirley for divining the real meaning of the "official statement."
Some of us need much help in that regard. lol!!
Published: Saturday | November 7, 2009
THERE ARE are fresh concerns today that the Government will not meet its end-of-November timetable for a US$1.2 billion stand-by agreement with the International Monetary Fund (IMF).
After 11 days in the island, an IMF team left yesterday with a brief statement on the state of the discussion; but this left the nation no clearer on when an agreement will be reached.
"The IMF appreciates the significant challenges faced by Jamaica and is working closely with the authorities in support of their efforts to formulate a plan to overcome these challenges," Trevor Alleyne, chief of the IMF's Caribbean division, said.
According to Alleyne, the IMF team held discussions with Prime Minister Bruce Golding, Finance Minister Audley Shaw, and senior officials of the finance ministry and the central bank during its visit.
"The focus of the discussions has been on the appropriate set of policy measures for both the short and medium term that would credibly address the key macroeconomic imbalances and thus help set the stage for robust economic growth," said Alleyne.
He added: "In particular, this has meant a focus on how to reduce the large fiscal deficit and put the debt on a clear downward path. In this regard, marked progress has been made during this mission".
close contact
Alleyne said the IMF and the Jamaican authorities would continue to be in close contact, and discussions were expected to continue next week at the fund's headquarters in Washington.
But financial analyst Anne Shirley said the signal from the IMF is that the agreement would take much longer than initially scheduled.
"The November time line will not be met, and the country should have seen that since the dismissal of central bank governor Derick Latibeaudiere," Shirley told The Gleaner. "We will now have to wait to go to the multi-laterals, and the issue of how to deal with the debt is back on the table for discussion," Shirley added.
Thanks to Anne Shirley for divining the real meaning of the "official statement."
Some of us need much help in that regard. lol!!
But with the Government declaring that it wants to wrap up talks this month,Financial Analyst Orville Johnson says it is critical that all the necessary preparations are completed on time.
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