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IMF considers reviewing requirements to meet debt repayment target.

 The International Monetary Fund (IMF) has indicated that it could be willing to review the required outlay requested of Jamaica to meet its annual debt repayment.

That requirement called the primary surplus is set at 7.5 per cent of  gross domestic product (GDP) - that works out at J$126 billion this fiscal year.

However since Jamaica bought out its Petrocaribe Debt resulting in the national debt falling faster than originally projected, calls have come for the government to ask the IMF to lower the amount it has to find for annual repayments.

IMF Mission Chief  to Jamaica, Dr. Uma Ramakrishnan, indicated that such a request was made and is under consideration.

Every time there's a discussion of where there is fiscal space...  in that context, this time also there was  a discussion. It is no different from our usual discussions," she said.

 

The IMF's latest assessment was conducted days after Jamaica bought back the Petrocaribe debt from Venezuela which reduces the country's debt to the level it was projected to be in 2017. 

   

The signal was given at a media briefing on Friday that Jamaica has passed its latest IMF test.

   

This will result in it receiving a further US$40 million draw down from the Fund.

 

Public sector hiring freeze?

Meanwhile, Finance Minister  Dr. Phillips has indicated that there could a be hiring freeze in the public sector as the wage settlement is higher than planned and could affect its target of  cutting the wage bill to 9 per cent of  GDP by the end of  the next fiscal year.

“We will have to look at arrangements in the public sector with response to our hiring of additional staff, the filling of posts  - whether costs can otherwise be cut, whether there is an interest in voluntary separation and we can facilitate that in areas where we can.”

No to pre-election spending spree

Phillips also said the Government will not engage in a pre-election spending spree and fiscal prudence will continue to be the order of  the day.

“Despite the fact that even the blind could see that elections are on the horizon we will not be engaging in any reckless spending ……”Phillips said.

 



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