Wed | Aug 16, 2017

Jamaica could face IMF post programme monitoring

Published:Wednesday | August 3, 2016 | 8:00 AM
The International Monetary Fund headquarters in Washington, DC.

The executive board of the International Monetary Fund (IMF) has decided that members which are no longer in a programme relationship with it are expected to engage it under its post-programme monitoring if their total credit outstanding exceeds 100 per cent of quota.

As at June 30 this year, Jamaica's quota was at 138.52 per cent, according to information posted on the IMF website regarding the island's financial position with the lending agency.

In a release issued last week, the IMF said its executive board last month discussed the policy on post-programme monitoring based on a staff report.

Post-programme monitoring provides a framework for closer engagement with members that have substantial outstanding Fund credit, and are no longer in a programme relationship. It involves monitoring of members' circumstances and policies, focusing on their capacity to repay the Fund.

REASONS FOR MONITORING

The IMF said post-programme monitoring is intended to provide an early warning of policies that could jeopardise the resources of the IMF's General Resources Account or Poverty Reduction and Growth Trust.

It said that if warranted, IMF management may also initiate or extend the programme for members where total credit is below the 100 per cent threshold, and terminate it early even if credit exceeds the threshold. Two post-programme monitoring discussions are expected each year, one coinciding with the Article IV consultation, and the second during a short staff visit.

There have been increasing calls that the Jamaican Government negotiate and enter into another programme with the IMF when the four-year Extended Fund Facility expires next March.

mcpherse.thompson@gleanerjm.com