KINGSTON, Jamaica — International ratings agency Fitch says that the approval of Jamaica’s International Monetary Fund (IMF) deal is a necessary step but there are high implementation risks given the country’s “erratic record in completing previous IMF programmes.”

The deal is important in the nation’s attempts to “stabilise domestic confidence, manage external vulnerabilities and increase the sustainability of public finances” but may it prove difficult to implement the programme given the “demanding targets” and inconsistent track record, the agency said in a release Thursday.

“The IMF has established demanding fiscal targets. The primary surplus is expected to average 7.5 per cent of GDP over the life of the program, compared with an average of 4. 5 per cent over the last three years.”

Among the reasons given for the forecast are the country’s “average gross domestic product contraction of one per cent between 2008 and 2012” and a heavy debt burden which will affect the economy’s ability to stabilise.

“Jamaica’s credit profile has come under pressure in recent years as a result of weak growth, high debt, deteriorating fiscal accounts and increasing balance of payments pressures. Key external indicators have continued to worsen in 2013 and pressure on the currency has remained intense. Jamaica’s gross international reserves position declined from $2.9 billion at the end of 2010 to $2 billion at the end of 2012, and the balance has deteriorated further to $1.7 billion at the end of March.”

Fitch upgraded Jamaica to ‘CCC’ from ‘RD’ in early March after it completed the National Debt Exchange.

“The current rating reflects our continued concerns regarding public debt sustainability and still high external financing needs. It incorporates the high degree of implementation risk that the government continues to face in following through on the IMF-monitored reform programme, as well as uncertainty over Jamaica’s growth trajectory.”