Jamaica and the World Bank are currently in close collaboration which could see the bank providing US$100 million in budgetary support to the country early next year.

Badrul Haque, the bank’s special representative for Jamaica, told the Caribbean Business Report here last Friday that the move “is part of the World Bank’s strategic plans to strengthen its presence in, and increase its lending support to Jamaica”.

He attributed the move to an initiative by the Bruce Golding-led administration to deepen engagement with multilateral organisations.

If the current plans, which are being closely developed with Jamaican authorities, materialise, it will mark the second budgetary support for consecutive fiscal years.

Haque noted that “a similar amount was approved and disbursed during fiscal year 2008/2009”.

For the current fiscal year, the bank has already approved US$15 million for rural economic development while a further US$16 million is expected to be approved this month, for transformation of Jamaica’s education system.

Asked whether the outcome of the current discussions between Jamaica and the International Monetary Fund (IMF) could impact the bank’s programme for Jamaica, Haque said he “does not envisage any problem in the relationship between Jamaica and the World Bank”.

The increased spending by the bank in Jamaica at this time, is in stark contrast to fiscal year 2005/2006 when a single loan totalling US$28.3 million was approved while no loans were approved the following year.

More than US$75 million was approved for fiscal year 2008/2009 to assist with recovery efforts following Hurricane Dean, Early Childhood Education, the Social Protection Programme and the HIV/AIDS education and support project.

Loans from the World Bank are made at exceptionally low rates. Haque, the Bank’s special representative for Jamaica, noted that the rate on the budgetary support loan attracts a return of only 0.82 per cent yearly, while most other rates are made at 0.57 per cent.

Along with its core lending and support programmes,the Bank’s private sector arm – the International Finance Corporation – opened an office in Jamaica this year, to serve the needs of the private sector.

The Corporation also co-ordinates and assists with issues related to public-private sector partnerships.