JIS News

Minister of Finance and the Public Service, Hon. Audley Shaw, has emphasised that “private sector investments, earning foreign exchange, producing runaway wealth, creating jobs and creating prosperity in Jamaica must ultimately be the substitutes for borrowing.”
The Minister was speaking yesterday (August 3), at the signing of an agreement for the Government to receive a US$200 million loan from the Inter-American Development Bank (IDB), for its fiscal consolidation programme.
President of the IDB, Luis Alberto Moreno signed for the bank, during a brief ceremony at the IDB’s headquarters, in Washington, D.C.
Mr. Shaw argued that Jamaica will have to get significant increments of new private sector investments, in order to realise this substitution for borrowing.
Explaining the government’s emphasis on fiscal consolidation, the Minister said this would contribute to the strengthening of fiscal discipline and accountability, the reduction of public debt, stimulation of economic growth and development of the Jamaican economy.
He acknowledged the tremendous support of the IDB along with the other multilateral partners, such as the International Monetary Fund (IMF).
For his part, Mr. Moreno said that with this signing, the IDB is sending a signal “that not only is the Bank there, but also that we really think that the success of this programme is the success of the Jamaican people.”
“This is about the future of the Jamaican people and this is what we have been working towards,” the President said.
Mr. Moreno pointed out that Jamaica has been on a good fiscal track, and urged international investors to look at Jamaica as an attractive place in which to invest.
The loan is to support the GOJ’s efforts to achieve fiscal policy goals over the short and medium term, and was secured at an interest rate of 1.51 percent.
Once disbursed, the loan represents a total of US$430 million (J$37.0 billion) in funding from the IDB since Jamaica entered into an agreement with the IMF in February this year.
The Minister was accompanied to the signing by Ambassador to the United States, Her Excellency Audrey Marks.

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