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PIOJ survey: Gov't borrowings decline in 2016, grant funding increase

Published:Thursday | June 15, 2017 | 12:00 AM

Jamaica continues to borrow less as the government adheres to a strict fiscal and debt management policy under a standby arrangement with the International Monetary Fund (IMF).

The Economic and Social Survey published by the Planning Institute of Jamaica (PIOJ) says the government borrowed less money from multilateral financial institutions last year than it did in 2015.

The reduced borrowings come amid a 77.3 per cent increase in grant funding over the period.

According to the survey, new loans from multi-laterals decreased 21.4 per cent to $27.5 billion last year.

The Inter-American Development Bank (IDB) and the World Bank were the main lenders.

It says the bulk of the money was borrowed for budgetary support, as well as for the environment and climate change sector.

At the same time the PIOJ survey says Jamaica received $17.5 billion in grant funding last year, the major portion of $11.8 billion coming from the United Kingdom.