Passing IMF Tests Helps Boost Business Confidence – Finance Minister

Finance and Planning Minister, Dr. the Hon. Peter Phillips, says the country passing all the required International Monetary Fund (IMF) quarterly tests, has helped to boost business confidence, which is currently at one of its highest levels.

“It is the passing of these IMF tests why consumer confidence is growing in Jamaica,” the Minister said, while opening the 2015/16 Budget Debate in the House of Representatives, recently.

Citing the recent Survey of Business Confidence, the Minister said of particular note is that “an all-time record number of firms voiced their intention to increase their investments in their own business during the year ahead.”

Dr. Phillips further pointed out that the successful tests have helped to create the present favourable economic environment, and has been the critical factor in restoring Jamaica’s trustworthiness in the international community.

“It is the passing of the IMF tests that enabled Jamaica to re-enter the global capital markets and secure the lowest rate of interest ever secured by Jamaica,” the Minister said.

The Finance Minister further noted that continually acing the IMF tests has also made Jamaica more and more attractive to investors both local and foreign.

“All of these things translate ultimately into better opportunities for our people; better prospects for employment and earnings and investments in our educational system and in the health sector,” Dr. Phillips said.

The country, which entered into a US$932.3 million four-year Extended Fund Facility (EFF) with the Fund in 2013, currently awaits approval of the 7th quarterly review of Jamaica’s performance under the Facility.

“We have successfully completed six consecutive quarterly tests and, based on the positive mission report from the Fund, I have every expectation that by the end of this month the Board would have approved the 7th quarterly review,” Dr. Phillips informed.

Jamaica is set to receive 28.32 million of Special Drawing Rights (SDRs) or US$40 million from the IMF in March, when the Board of the Fund approves the 7th review .

This follows the successful completion of the 7th review by an IMF mission team, which visited Jamaica from February 16 to 25.