KINGSTON, Jamaica — The International Monetary Fund (IMF) said today that Jamaica’s implementation of the new Stand-By arrangement (SBA) remains strong, with sustained positive Gross Domestic Product (GDP) growth.

The report, the first by the Fund since the new agreement was signed last November, said that the rebalancing from direct to indirect taxes, which is accompanied by higher social expenditure, is expected to expand the revenue base to support growth-enhancing spending, which will create jobs and reduce poverty

It added that the Bank of Jamaica’s planned move to introduce a market-based exchange rate pricing mechanism, will facilitate the central bank’s inflation targeting objective.

On April 14, the Executive Board of the International Monetary Fund (IMF) completed the first review of Jamaica’s performance under the programme supported by the Stand-By Arrangement (SBA), on a lapse of time basis.

The 36-month SBA with a total access of SDR 1,195.3 million (about US$ 1.63 billion), equivalent of 312 per cent of Jamaica’s quota in the IMF, was approved by the IMF’s Executive Board on November 11, 2016.

“The Jamaican authorities continue to view the SBA as precautionary, and to use it as an insurance policy against unforeseen external economic shocks that could lead to a balance of payments need,” the IMF said.

Balford Henry