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IMF approves new three-year standby arrangement for Jamaica

Published:Saturday | November 12, 2016 | 11:34 AM

The International Monetary Fund (IMF) has approved a three-year Stand-By Arrangement (SBA) for Jamaica to support continued economic reforms.

The agreement, approved today by the IMF Executive Board, allows for the fund to release US$1.64 billion to Jamaica.

About US$411.9 million will be immediately available.

The remainder will be available in six tranches upon completion of semi-annual program reviews.

The deal replaces the current special extended fund facility that was scheduled to end in March next year.

"The Jamaican authorities have indicated that they will treat the arrangement as precautionary, and do not intend to draw on the new SBA unless exogenous shocks generate an actual balance of payments need," an IMF spokesperson said in a statement.

The IMF says Jamaica has established a commendable track record of program ownership and implementation under the Extended Fund Facility.