JIS News

KINGSTON — The World Bank has approved a development policy loan of US$100 million (J$8.6 billion) for Jamaica.

This was disclosed by Minister of Finance, Hon. Audley Shaw, when he opened the debate on the first Supplementary Estimates for 2011/12, in the House of Representatives on September 8.

Mr. Shaw informed that the loan will be at an interest rate of 1.5 per cent and will be for a period of 18 ½ years, including a nine and a half year moratorium on the payment of the principal.

"The loan is based on our continuing commitment for the management of debt, public financial management, including our plan to introduce a Central Treasury Management System to better manage the cash resources of government, as well as our commitment to tax administration reform and to improving the performance of our revenue,” Mr. Shaw said.

The loan will be used to support the enhancement of fiscal and debt sustainability; increase the efficiency of financial management and budget process; and strengthen tax administration and increase tax revenue capacity.

The Central Treasury Management System (CTMS), to be implemented early 2012, will ensure better management of public resources by bringing the responsibility for treasury management under one agency.      

              

By Latonya Linton, JIS Reporter