JA gets a US$303.4 mil boost from the IMF

[evanovitch]

JA gets a US$303.4 mil boost from the IMF
Monday, 31 August 2009
The Bank of Jamaica (BoJ) has received a portion of the monetary allocations due from the International Monetary Fund (IMF).

The US$303.4 million is approximately 74% of Jamaica's quota with the IMF and was received on Friday.

The allocation is not part of the money Government hopes to get as a result of its special application for a loan for US$1.3 billion from the lending agency.

According to the Ministry of Finance, the granting of these Special Drawing Rights (SDR's) follows a decision by the IMF to bolster the reserves of member countries in light of the global recession.

These special allocations are not given in the form of currency to be used in commercial transactions but can be exchanged for international currencies based on a rate of exchange of one SDR to US$1.57.

As such, the Central Bank will have an opportunity to acquire additional hard currency to support the country's external debt obligations.

Come September, Jamaica and other member countries will benefit from another special allocation equivalent to US$33 million.

Last week's allocations bumped the Net International Reserves (NIR) to US$1.9 billion, the equivalent of 15-weeks of goods and service imports.

The Finance Ministry says this allocation helps the BoJ to underwrite stability in the financial markets and meet any shortfalls in Jamaica's external financing requirements.

 

 

[Derek]

Re: JA gets a US$303.4 mil boost from the IMF

Is it really a 'boost'? Can Jamaica repay before the IMF comes back and imposes its will on the country?

[RichD]

Re: JA gets a US$303.4 mil boost from the IMF

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Derek</div><div class="ubbcode-body">Is it really a 'boost'? Can Jamaica repay before the IMF comes back and imposes its will on the country? </div></div>

nuh worry bout dat man

[Dr.Dudd]

Re: JA gets a US$303.4 mil boost from the IMF

Repay before??
You need to do some reading on the strategies the IMF use when they extend loans. First there is never a time factor between when they issue the money and when they make their demand. Usually the demands are made prior to the first tranche being issued. Then benchmarks are set by the IMF. . On achieving the benchmarks other tranche will follow. Usually less than half of the contracted amount is ever issued,but the country have to pay to reserve the whole amount although they never received it.simply because those benchmarks are impossible to be achieved, without civil wars or famine<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Derek</div><div class="ubbcode-body">Is it really a 'boost'? Can Jamaica repay before the IMF comes back and imposes its will on the country?
What they recieve in this case is not really a part of a loan, but a portion of their deposits as member of the IMF
It is similar in nature to a withdrawal from your account at th ebank.</div></div>

[Derek]

Re: JA gets a US$303.4 mil boost from the IMF

I don't need to do any reading about the IMF's strategies if you don't bloody mind.
Whenever their demands are made, they still 'come back' and make the country worse off.

[johnnycakes]

Re: JA gets a US$303.4 mil boost from the IMF

Go back and read the article again and notice the word &quot;loan&quot; was used once, there was no talk of the interest or how these &quot;allocations&quot; would be repaid and what cuts the GOJ would have to make in other areas like social spending and infrastructure rehabilitation.

&quot;...boost...monetary allocations.......quota.....Special Drawing Rights......bolster the reserves........special allocations....

All nicer ways of saying Jamaica is going deeper into the debt hole and Jamaicans will pay for it.


Well, don't fret.

Capitalism will eventually pull Jamaica up.

The problem is waiting the few hundred years it will take.