RATING Agency Standard and Poor’s says that last week’s approval by the International Monetary Fund of a new agreement with Jamaica does not warrant a review of that country’s credit worthiness at this time, as the details of the agreement were in line with expectations.

At the same time, agency spokesman and analyst Joydep Mukherji has acknowledged that “meeting the targets will be challenging” for the country.

In an interview with the Jamaica Observer, Mukherji said that Jamaica’s credit rating remains at triple C + (CCC+) which was applied at the time the debt exchange was undertaken in March. He noted that “there were no new details in the announcement last week,” as Jamaican authorities had already made those details public in parliament.

Elaborating on his assertion that implementation of the programme will be challeinging, Mukherji pointed to Jamaica’s low growth which he said amounts to almost zero when measured against its per capita.

He said that it is “difficult to impose pain when growth is at such low levels.”

Under the agreement which was approved by the IMF board at its meeting on May 1, Jamaica is to receive US $932.3 M over a four-year period.

— Harold G Bailey