IDB to Provide Further Assistance to Jamaica…PM Announces

Prime Minister Bruce Golding, says yesterday’s signing of a US$329Million loan with the Inter-American Development Bank (IDB), marks the start of many great developments to come as both the Government and the bank are in discussions on a number of major projects.
He said the bank is talking to Government about several measures they will support, one of which includes its Competitiveness Enhancement Programme. He said Government would be embarking on phase two of this project soon and will be looking at another programme – the Reform of Public Sector Management Programme. He said the IDB is also talking to Government on how it can strengthen its customs management and the road infrastructure programmes.
Mr. Golding was speaking yesterday at the signing of three loan agreements totalling US$329M at Jamaica House, with the President of the IDB, Luis Moreno and Finance Minister Audley Shaw.
The IDB, Mr. Golding said is also expanding its support of Government’s Citizen’s Security and Justice Programme, that seeks to tackle crime at its root cause. The loan assistance from the IDB comes in two forms – one of which is a project loan and the other, a policy based loan.
Policy based loans, Mr. Golding explained, constitute a little over a third of the total loan programme. He explained that the policy based loans are designed to support policies formulated by the Government of Jamaica.
“The IDB has never sent us an envelope with any policies they are requiring us to pursue. It is the Government of Jamaica that identifies the changes that need to be made and we formulate those policies and present them to the bank. The loans are made on the understanding that those policies will be implemented faithfully, steadfastly and I have given President of the IDB Mr. Luis Moreno my undertaking that we will honour our obligations”, Mr. Golding explained.
Meanwhile, Mr. Golding has given the assurance that Jamaica is well positioned to meet its foreign exchange obligations and to pay out the $200M Euros when it becomes due in another three weeks, based on the signing of the loan agreement. He said the global crisis will pass and Government wants to equip Jamaica, so when it has passed, we are in a position to achieve levels of growth that have been eluding us. “We are committed to that approach and we are grateful for the assistance provided to Jamaica”, Mr. Golding said.
In his brief remarks, President of the IDB, Luis Moreno said the facility was one of the largest provided to any Caribbean country. He emphasised that the loans were being made available for the sole purpose of providing Jamaican businesses with access to funds and liquidity, to help their businesses to prosper and grow despite the global economic crisis. The money will be loaned to the private sector through banks and other financial agencies.