FINANCE MINISTER SIGNS US$200 MILLION LOAN AGREEMENT

FINANCE MINISTER SIGNS US$200 MILLION LOAN AGREEMENT
WITH WORLD BANK

WASHINGTON, D.C., Feb. 25 (JIS):

Minister of Finance and the Public Service, Hon. Audley Shaw, today (February 25), signed a US$200 million loan agreement with the World Bank, in Washington, D.C.

The agreement, which is the first Programmatic Fiscal Sustainability Development (PFSD) loan, will support a series of measures to enhance fiscal and debt sustainability.

"This loan will support the Government's comprehensive reform programme, to address fiscal and debt sustainability," Minister Shaw explained, at the signing ceremony, which took place at the World Bank's headquarters in downtown Washington, D.C.

The initiative is a co-ordinated effort by multi-lateral development banks and the International Monetary Fund (IMF), to help the Government of Jamaica sustain its long-term development agenda.

Mr. Shaw pointed out that the loan will assist to increase the efficiency of the public financial management and budgetary process, as well as increase tax revenue through improved tax administration.

"The Government of Jamaica is deeply appreciative to the World Bank for its support for the country's reform programme, together with support from other international development partners," the Minister said.

"We are implementing a comprehensive reform programme to put the country back on a sustainable path and achieve significant growth over the medium term," Mr. Shaw added.

Signing on behalf of the World Bank, Director of the Caribbean region, Mrs. Yvonne Tisikata said that despite the severe impact of the global crisis, Jamaica remains committed to a long-term reform agenda and has taken critical measures to advance key public sector reforms.

"The fiscal responsibility framework, the comprehensive debt exchange, the public bodies rationalisation plan and the tax administration reform, are far- reaching and if fully implemented, will generate large benefits for the Jamaican people," she added.

The US$200 million loan is repayable over 30 years.

Accompanying Minister Shaw at the signing were Jamaica's Ambassador to the United States, His Excellency Anthony Johnson; Governor of the Bank of Jamaica, Mr. Brian Wynter; and Financial Secretary in the Ministry of Finance and the Public Service, Dr. Wesley Hughes.