CaPRI says Jamaica should expect IMF conditionalities

The Caribbean Policy Research Institute (CaPRI) says it’s not likely that Jamaica will be exempt from conditionalities in its borrowing relationship with the International Monetary Fund (IMF).



According to CaPRI the relationship with the IMF will be no different from that of a regular bank providing a loan.



As a result CaPRI says Jamaica would likely be subjected to one or both kinds of conditionalities.



One type of conditionality would require Jamaica to meet well-defined qualification criteria.



The other, which is more traditional, dictates that Jamaica would have to undergo reforms.



CaPRI believes Jamaica would have to undergo the conditionality, which demands extensive reforms because of the current structural weaknesses.



These include the inefficient tax system, high public debt and the consistent current account deficit.



However, CaPRI is forecasting that the IMF would insist that Jamaica accepts the responsibility for selecting, designing and implementing reform policies.



The researchers also say rather than fixed targets, Jamaica is likely to be asked to meet broad strategic objectives, and its progress will be monitored accordingly.