Jamaica turning to IMF for help

Jamaica will be looking to tap into the International Monetary Fund (IMF) for financial support amid the coronavirus pandemic, the Finance Ministry announced today.

In a statement, though Finance Minister Dr Nigel Clarke did not reveal the amount of money being sought, he shared that the request was made yesterday for access to the IMF’s Rapid Financing Instrument (RFI).

He further explained that the RFI provides financial support to IMF member countries with balance of payment needs but without the requirement of having a “full-fledged” IMF programme, ongoing reviews and conditionality.

Last week, the IMF substantially increased the amounts that member countries may access under the rapid financing instrument.

According to Dr. Clarke, Jamaica enjoys a reasonable stock of foreign reserves and there are contingency financing options.

Clarke also noted that despite these mitigating factors, which provide for Jamaica to absorb economic shocks, the duration of the “global lockdown” is highly uncertain.

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