The United Nations Development Programme, UNDP, is calling for Jamaica’s debt repayments to be tied to economic performance.
The recommendation is contained in a report released today, following a conference on Development Financing in Ethiopia.
The report calls for innovative financial instruments for highly indebted small island developing states, including Jamaica.
One such proposal is for GDP-indexed loans, which tie repayments to the country’s economic performance.
Another proposal is to allow countries to freeze debt payments when a major economic shock, such as a hurricane, occurs.
The report says Jamaica and other small island developing states urgently need these types of financing, if they are to meet their development goals.