Jamaica Gets USD35 Loan from CDB to Assist in Improving Debt Dynamics
Efforts by the Government of Jamaica to reform the country's economy by promoting sustainable growth and lifting per capita income are to be further supported by a USD35 mn Policy Based Loan (PBL) from the Caribbean Development Bank (CDB). A PBL is a special product from the Bank which offers resources at extremely low interest rates. Jamaica is currently in an extended fund facility with the International Monetary Fund and has performed well with five successful reviews, a return to positive growth and a reduction in unemployment. The PBL, which was approved by CDB's Board of Directors on Thursday, December 11, 2014, will help to improve Jamaica's debt dynamics by lowering the average effective interest rate on the debt stock. The reforms on which the PBL disbursement would be based are: Fiscal consolidation, Growth and competitiveness, and Social protection. These reforms are geared towards the achievement of fiscal and debt sustainability; improving the environment for doing business in an effort to achieve sustainable growth rates of around 2 per cent; and mitigating the potential adverse impacts of the programme on the more vulnerable groups in Jamaica. The PBL will complement the other support being provided by the IMF, the Inter-American Development Bank (IDB), World Bank (WB) and the European Union (EU).