Jamaica Set to Meet Latest IMF Targets

The Economic Programme Oversight Committee (EPOC) says the country is set to meet the latest targets in the Precautionary Standby Arrangement, PSBA, with the IMF.

In a statement issued Monday afternoon, EPOC said based on the preliminary results the government is on track to meet the indicative targets for the period April to September 2018.

EPOC’s Co-chairman, Keith Duncan, says non-borrowed reserves as at the end of September 2018 stood at just under USD$2.5-billion, significantly exceeding the target of $2.14-billion. He says inflation which now stands at four-point-three percent is back in line with the programme range.

EPOC says as a result of overall strong performance, the government has met all eight macro-fiscal structural benchmarks for the November 2016 to October 2018 period.

It says the GOJ has also met the fourteen structural benchmarks for public sector transformation, public bodies and public service reform up to October 2018.

EPOC notes that no new structural benchmarks have been added by the IMF under the fourth review of the PSBA.

This it says signals that the focus is on the completion of the remaining reforms under the programme.

However, Mr. Duncan in reference to public sector reforms, noted that the IMF has made it abundantly clear that the reforms should be a high priority.

This is expected to create the fiscal space needed to provide meaningful resources for security, social and growth enhancing capital spending.

Mr. Duncan says he’s also extremely supportive of the announcement by the Minister of Finance to revise the Pension Investment limits. He says this has the potential of unlocking significant venture capital which should spur innovation, productivity and growth in the Jamaican economy.

Mr. Duncan says overall, EPOC is of the view that the economic programme remains on track.

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