Gov’t to Conclude Extended Fund Facility in Three Months

The Government will in three months bring the Extended Fund Facility (EFF) to an early conclusion and commence the new standby arrangement with the International Monetary Fund (IMF) as a substitute programme.

Minister of Finance and the Public Service, Hon. Audley Shaw, made the disclosure during the sitting of the House of Representatives on Tuesday (November 1) at Gordon House.

It was announced in October that the Government had reached a Staff-Level Agreement with the IMF for a US$1.7-billion three-year successor standby programme. He said it will provide an insurance policy against economic shocks and natural disaster.

“If we have shocks, such as… floods, hurricanes, God forbid an earthquake; oil shocks with the price of oil, all of these things, then we have an insurance policy of US$1.7 billion,” the Minister said.

Speaking at a press conference in October, Prime Minister, the Most Hon. Andrew Holness, said the new standby agreement emphasises the need for reorientation and transformation of the public sector to an “efficient performance-focused facilitator of growth, social well-being and rule of law”.

The Prime Minister said the Administration’s goals and direction would include reorienting public resource allocation towards infrastructure, social protection and security-related spending, while transforming the public sector to be more efficient and delivery-focused.

Focus will also be placed on modernising the monetary policy framework and building the foundation for an eventual move to inflation targeting; bolstering the resilience of Jamaica’s financial system; and implementing initiatives that unlock Jamaica’s growth potential and promote private-sector job creation.