Opposition Leader Mark Golding has chided the Government for celebrating the US$6.7-billion recovery package from international financial institutions (IFIs), arguing that presenting new borrowing as a triumph masks “a national setback rather than a success”.

Golding, responding in Parliament on Tuesday to Prime Minister Dr Andrew Holness’s update on the country’s reconstruction strategy and the money from the IFIs, said the Government’s tone failed to reflect the seriousness of the economic challenge now facing Jamaica after Hurricane Melissa.

He said that while the prime minister described the financing package — assembled by the IMF, World Bank, IDB, CAF and the Caribbean Development Bank — as “nothing short of historic”, the public should view the announcement with far greater caution.

“These debts that we are now going to be incurring to finance our attempts at recovery are like lending money to a business that suffered losses through some kind of crisis that it’s trying to dig itself out of a hole… taking on additional debt. To do that is going to be a challenging road for any country. Therefore, I don’t think it’s appropriate to treat these announcements in a triumphant way,” said Golding.

He said the sheer size of the planned borrowing should dampen the Government’s celebratory tone, as the US$3.6-billion in new sovereign debt amounts to more than a quarter of Jamaica’s gross domestic product (GDP).

Golding also reminded the House that the country had spent 15 years working its way out of a crippling debt burden under tough fiscal rules introduced by a previous Administration from his side of the House.

“This event has caused us to retrace our steps substantially from the economic path we were on and which the nation incurred substantial sacrifices to get to where we were. I’m not blaming the Government for Melissa, that would be absurd. I’m not blaming the Government for seeking resources to fund the recovery; it’s going to be necessary to get those resources. I am just making the point that this is not something to celebrate. This is not something to gloat about. This represents a substantial setback for Jamaica and if it’s not administered properly, it could permanently weaken our future prospects and damage the country’s future,” charged the opposition leader.

Golding also questioned the balance of the financing package, pointing out that Jamaica would have to repay almost all the funds being celebrated. He noted that only US$12 million of the US$6.7 billion committed so far comes in the form of grants — a concern he said reflects the wider disadvantages faced by vulnerable island nations confronting climate-driven disasters year after year.

Following Golding’s concerns, several Opposition MPs pressed the Government for further details.

Member of Parliament for St Andrew South Eastern, the Opposition spokesman on finance Julian Robinson asked whether the loans carry specific conditions, how quickly the funds will be drawn down, and whether all the money must be restricted strictly to rebuilding efforts.

St Catherine North Western MP Damion Crawford asked whether the US$6.7-billion package would be enough, given that the country’s asset damage has been estimated at US$8.8 billion, while St Ann South Eastern MP Kenneth Russell questioned whether the recovery strategy would be flexible enough to treat parishes differently based on the scale of their damage.

Portland Eastern MP Isat Buchanan asked how the Government plans to help vulnerable groups who may not be able to use the electronic system to obtain essential items, calling for clear information on which allocations will go directly to those most affected by the storm.

Dr Alfred Dawes, MP for St Catherine South Eastern, shifted the focus to long-term planning, asking whether the reconstruction effort would merely rebuild existing sectors or intentionally pivot Jamaica toward new industries with higher growth potential. He said the hurricane presented an opportunity to reconsider the country’s development model, especially in areas like green energy and resilient manufacturing.

Responding to the Opposition’s concerns, Holness reiterated that the full details of the loan terms would emerge as Finance Minister Fayval Williams finalises negotiations with each institution.

However, he defended the scale and structure of the package, arguing that Jamaica’s credibility and disciplined fiscal management allowed it to secure financing of an unprecedented size at remarkable speed.

Holness also declared that while the US$6.7-billion will not cover everything, he was confident that it will be enough to cover what is on the Government’s balance sheet.

“I’m certain it’s not going to cover everything, but it is far more than we have ever had and it is certainly a significant part of what we will need and that’s substantial, but remember, though, some of the asset damage is not on the account of the Government, some of the asset damage would be hotels which are privately owned, businesses which are private,” said Holness.