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JAMAICA has missed deadlines on 10 key reforms set under the qualitative conditionalities of the International Monetary Fund (IMF) stand-by arrangement, a document released this month revealed.
The missed deadlines affect the island's competitiveness but not the flow of funds, reasoned the IMF country representative Dr Gene Leon
The missed deadlines affect the island's competitiveness but not the flow of funds, reasoned the IMF country representative Dr Gene Leon
The 10 delays account for one-quarter of the nearly 40 qualitative conditionalities as listed in the appendix of an IMF executive board discussion on the Second Review released December 10.
Leon told the Business Observer that the delays should not be viewed as an impasse as most of the delays are procedural.
"I don't think that the public should be concerned as these dates are guide posts (for) meeting the particular goals set," he said. "It cannot happen in a linear way because legislation takes time."
The delays relate to the following:
* tallying of all public sector bank accounts;
* amendment of the BOJ Act;
* reformation of tax incentives;
* preparation of concept paper outlining measures to combat unregulated financial operations (UFOs);
* amendment of the Unit Trust Act to encourage the development of collective investment schemes;
* Amendment of the Companies Act of Jamaica to remove structural impediments to the development of the vibrant mutual fund market;
* Amendment of the Unit Trust Act to encourage the development of collective investment schemes;
* Amendment of the Companies Act of Jamaica to remove structural impediments to the development of the vibrant mutual fund market;
* restructuring of the debt management agency; and
* Prime Minister's Committee Report on Public Sector Reform; (originally slated for September but met in November);
Despite these delays, the IMF and its stakeholders anticipate implementation of all the conditionalities.
"Jamaica is making progress in most of the structural reforms and the timelines put to them," said Leon, adding "There has been a steady match towards meeting those goals however there have been some (delay) more along the lines of (legislation and) hiring people which is not at fault of the government."
For instance, one benchmark in November required the Ministry of Finance to hire a technical advisor to improve debt management.
"It turns out that the ministry could not find that person in time. Was this a failure? No because you need someone with requisite skills," he reasoned.
The qualitative reforms are separate from the quantitative performance criteria set by the IMF under the US$1.3 billion stand-by arrangement signed in February.
So why implement a timeline if they can be adjusted?
"Because you want to say that progress is being made," Leon retorted.
Previously, financial analysts, including Charles Ross and Dennis Chung, have publicly expressed disappointment at the lack of growth targets set by the IMF for the country despite a slew of other quantitative and qualitative conditionalities under the US$1.3-billion stand-by arrangement with the Jamaican government, signed in February 2010. Dr Leon, in response, stated that the IMF couldn't impose growth targets but could only facilitate growth. The island is projected to grow the seventh slowest in the world to 2015 according to IMF data.
Read more: http://www.jamaicaobserver.com/busin...#ixzz18qflPiKZ
Leon told the Business Observer that the delays should not be viewed as an impasse as most of the delays are procedural.
"I don't think that the public should be concerned as these dates are guide posts (for) meeting the particular goals set," he said. "It cannot happen in a linear way because legislation takes time."
The delays relate to the following:
* tallying of all public sector bank accounts;
* amendment of the BOJ Act;
* reformation of tax incentives;
* preparation of concept paper outlining measures to combat unregulated financial operations (UFOs);
* amendment of the Unit Trust Act to encourage the development of collective investment schemes;
* Amendment of the Companies Act of Jamaica to remove structural impediments to the development of the vibrant mutual fund market;
* Amendment of the Unit Trust Act to encourage the development of collective investment schemes;
* Amendment of the Companies Act of Jamaica to remove structural impediments to the development of the vibrant mutual fund market;
* restructuring of the debt management agency; and
* Prime Minister's Committee Report on Public Sector Reform; (originally slated for September but met in November);
Despite these delays, the IMF and its stakeholders anticipate implementation of all the conditionalities.
"Jamaica is making progress in most of the structural reforms and the timelines put to them," said Leon, adding "There has been a steady match towards meeting those goals however there have been some (delay) more along the lines of (legislation and) hiring people which is not at fault of the government."
For instance, one benchmark in November required the Ministry of Finance to hire a technical advisor to improve debt management.
"It turns out that the ministry could not find that person in time. Was this a failure? No because you need someone with requisite skills," he reasoned.
The qualitative reforms are separate from the quantitative performance criteria set by the IMF under the US$1.3 billion stand-by arrangement signed in February.
So why implement a timeline if they can be adjusted?
"Because you want to say that progress is being made," Leon retorted.
Previously, financial analysts, including Charles Ross and Dennis Chung, have publicly expressed disappointment at the lack of growth targets set by the IMF for the country despite a slew of other quantitative and qualitative conditionalities under the US$1.3-billion stand-by arrangement with the Jamaican government, signed in February 2010. Dr Leon, in response, stated that the IMF couldn't impose growth targets but could only facilitate growth. The island is projected to grow the seventh slowest in the world to 2015 according to IMF data.
Read more: http://www.jamaicaobserver.com/busin...#ixzz18qflPiKZ