The International Monetary Fund (IMF) is to inject US$210 million into the Financial System Support Fund to assist institutions that may experience difficulty as a result of the National Debt Exchange (NDX).
The additional support will bring the amount in the fund to US$850 million, up from the US$640 million that the IMF originally put into the facility, when it was established in 2010 under the Jamaica Debt Exchange (JDX).
Making the announcement at the Jamaica House press briefing on Wednesday, March 13, Minister with responsibility for Information, Senator the Hon. Sandrea Falconer, explained that the fund will support general financial system stability.
She said it had been set up to “provide funding to eligible financial institutions, which are regulated by the Bank of Jamaica, or the Financial Services Commission, which encountered temporary financial difficulties because of their participation in the Jamaica Debt Exchange programme”.
However, she noted, the fund was not operationalised because there was no call for its resources after the JDX. The IMF loan capital of US$640 million has since been held in a specially designated account at the Bank of Jamaica (BoJ).
In light of the NDX, Cabinet has given approval for the Fund to be operationalised and the Government will put in US$10,000 in equity.
The Bank of Jamaica will administer the fund under the directorship of Deputy Financial Secretary, Ann Marie Rhoden; Senior Legal Officer in the Ministry of Finance and Planning, Paula Tyndale; Acting Director General of the Planning Institute of Jamaica (PIOJ), Everton McFarlane; Senior Director of the Debt Management Branch, Ministry of Finance, Pamella McLaren; and Senior Director in the Ministry, Brigette Wilks.
By Alphea Saunders