Daraine Luton, Senior Staff Reporter
JAMAICA IS due to draw down US$330 million in loan funds from the Inter-American Development Bank (IDB) and the World Bank this fiscal year.
Finance Minister Dr Peter Phillips, who made the disclosure in the House of Representatives on Tuesday, said the IDB is expected to provide US$200 million and the World Bank, US$130 million.
"We expect this year, based on discussions with the IDB and the World Bank, based on discussions which still continue, that we will get in the order of US$330 million," Phillips said.
Opposition Spokesman on Finance Audley Shaw had posited that Jamaica is unlikely to get more than US$60 million from the multilaterals.
But Phillips said, based on the discussions and the scheduling, he expects Jamaica to draw down the US$330 million from the multilaterals.
He said, however, that he was not prepared to say more on the issue until current discussions are formally concluded.
no capital markets
In the meantime, the finance minister said it is not anticipated that the Government will be approaching the international capital markets for financing this budget year.
"It is a situation that we keep under review. We are trying to remain outside of the need to go to the capital market for as long as possible because what we want to do is demonstrate not only our capacity to live within our means, but to finance ourselves from identifiable resources from the multilaterals to the fullest extent possible," Phillips said.
The Jamaican Government in May inked a four-year extended fund facility (EFF) arrangement with the International Monetary Fund (IMF), which would allow the country to borrow about US$932.3 million from the fund.
The financing arrangement forms a critical part of a total funding package of US$2 billion from Jamaica's multilateral partners, including the World Bank and the IDB, with each having preliminarily agreed to allocate US$510 million over the next four years.
Earlier this week, the executive board of the IMF indicated that Jamaica has completed the first review under the EFF, which enables the disbursement of $19.97 million in special drawing rights or about US$30.6 million to the country.