THE International Monetary Fund (IMF) said Jamaica has so far “overperformed on indicative targets and met structural benchmarks” that were set for the Precautionary and Liquidity Line (PLL) agreement reached in March, while highlighting that the country is set to have access to US$255 million under the Resilience and Sustainability Facility by completing various reforms aimed at improving resilience to climate change.

The IMF made the note in a release late Friday, after reaching a staff-level agreement with the Government on the completion of the first reviews of Jamaica’s Precautionary and Liquidity Line (PLL) and the Resilience and Sustainability Facility (RSF). The PLL continues to provide valuable insurance against downside risks while the RSF supports Jamaica’s ambitious agenda to increase resilience to climate change, transition to a zero-carbon economy, and catalyse climate financing. The IMF’s Executive Board is expected to consider these reviews in August.

Ahead of that review, the IMF staff praised the progress that has been made so far in implementing the policy agenda under the Precautionary and Liquidity Line.

“They overperformed on indicative targets and met structural benchmarks, supporting efforts to bring the anti-money laundering/combating the financing of terrorism (AML/CFT) framework to international best practice and improve data adequacy. The fiscal balance recorded an overall surplus in FY 2022/23. International reserves continued to increase over the last fiscal year, strengthening external buffers in line with objectives in the authorities’ programme. The authorities continue to treat the PLL as precautionary,” the IMF said.

It added: “Significant progress is being made by the authorities with their ambitious agenda to green the economy and make it more resilient to climate change. In the context of the authorities’ policy agenda under the Resilience and Sustainability Facility, they are completing reform measures that will introduce important climate-related elements in the fiscal framework and foster energy efficiency. The completion of these reforms will make available SDR191.45 million (about US$255 million) under the arrangement.

It also praised Jamaica’s commitment to macroeconomic stability and strong policy frameworks, which it said continue to allow the country to navigate smoothly the difficult global environment.

“Over the past few years Jamaica has been buffeted by a difficult global environment, however entrenched macroeconomic stability and sound policy frameworks are helping the country to navigate this complex global environment,” the IMF said as it pointed to the strong recovery after the COVID-19 pandemic, with growth reaching 4.3 per cent in the last fiscal year.

“The outlook points towards continued growth, and inflation is expected to return to the mid-point of the central bank’s target range by year end. Nonetheless, global risks remain high and include tighter-than-expected global financial conditions, higher-than-expected global energy and food prices, and the ever-present risks from climate events.

“Reducing Jamaica’s susceptibility to natural disasters, rising sea level, and extreme weather events will help foster growth and job creation as well as incentivise private sector financing for a range of investments — including those related to energy efficiency, emissions reduction, and increased resilience,” it said.

The IMF Board in March approved a 24-month arrangement under the Precautionary and liquidity Line (PLL) with access of US$968 million (190 percent of quota), to provide insurance against risks from higher commodity prices, a global slowdown, tighter-than-envisaged global financial conditions, and new COVID outbreaks. The Executive Board also approved an arrangement under the Resilience and Sustainability Facility (RSF) for US$764 million (150 percent of quota) to strengthen physical and fiscal resilience to climate change, advance decarbonization of the economy, and manage transition risks. The RSF is expected to catalyse funding for climate priorities from other official lenders and the private sector.