$100-m IDB loan to help reform Ja’s financial systemFriday, July 22, 2016
JAMAICA has received a US$100-million loan from the Inter-American Development Bank (IDB) to help reform its financial system.
Speaking at the signing ceremony at the Ministry of Finance and the Public Service yesterday, Therese Turner-Jones, general manager for IDB’s Caribbean Country Department, explained that the loan programme is designed "to promote financial stability through a series of reforms aimed at improving regulation and supervision in the banking, securities, pension funds and insurance sectors."
According to Turner-Jones, with the ensuing threats in the global financial markets, particularly as it pertains to the current de-risking threats, it was urgent to implement reforms to make Jamaica’s financial system more resilient.
She stated that the programme also supports the development of a framework that will regulate the operations, registrations, lending practices and interest rates of micro financial institutions. The reforms will improve access to credit by companies, especially to micro, small and medium-sized enterprises (MSMEs), and to individuals who are currently excluded or not sufficiently integrated into the financial system. It is expected that the reforms will enhance the provision of long-term financing for MSMEs for productive projects.
With the approval of the US$100-million loan facility, the IDB would have thus far, supported the Government of Jamaica with resources totalling US$635 million since the start of the IMF Extended Fund Facility (EFF) in May 2013. It is expected that this figure will increase to over US$700 million by the end of the EFF in 2017, substantially more than the amount initially committed by the IDB in support of the Government during the EFF.
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