KINGSTON, Jamaica — The Private Sector Organisation of Jamaica (PSOJ) today welcomed the announcement that the International Monetary Fund (IMF) and the Government have signed a new Standby Agreement, with precautionary funding of US$1.7 billion.

“This news will inspire confidence in the fiscal and monetary programme, and underlines the commitment of the Government to ensuring that we continue to build on the successes of the current Economic Reform Programme,” PSOJ said in a release.

The PSOJ, as early as 2015, had indicated that the fiscal programme, of which a continued agreement with the IMF was essential, would be necessary in maintaining high levels of confidence locally and internationally.

“We are particularly pleased that a proactive approach was taken and as such the uncertainty of a protracted negotiation was eliminated.”

The programme will be buoyed by the recommendations coming out of the Economic Growth Council (EGC), and PSOJ said it remains confident that if Jamaica continues the fiscal and legislative measures, as well as adopts the recommendations from the EGC, then the country will be well on its way to sustainable economic and social development.

“As we move forward, the PSOJ recognizes however, that significant risks remain to the programme, and urges the government to ensure the timely implementation of measures to address crime and indiscipline, inefficient government bureaucracy (through public sector transformation), more competitive tax rates, including the continued move away from direct taxes for all, and dealing with corruption. Already, greater emphasis on tax compliance and ease of paying taxes has reaped the benefit of higher tax collections for the first five months of the fiscal year.

“The PSOJ also recognizes that the credibility of the programme, and our development, is going to be dependent on the details of the arrangement but welcome the moves the Government has been making towards financial and social inclusion, as the foundation for sustainable growth and development,” the organization explained.