Jamaica agrees to $750m IMF loan terms and joins the harem



Jamaica has agreed terms with the International Monetary Fund to receive a new $750m (£483m) loan.

A condition for the IMF loan is the completion of a planned debt swap.

The Caribbean nation must get private sector lenders to accept more lenient terms on its existing heavy debt load, equal to 140% of economic output.

The Jamaican government is also implementing spending cuts and labour market reforms as it seeks to deal with a serious economic crisis.

“Over the last three decades, the Jamaican economy has experienced very low economic growth, declining productivity, and reduced international competitiveness,” said Jan Kees Martijn, the head of the IMF’s mission to Jamaica.

“An important factor behind these problems has been Jamaica’s unsustainable debt burden, which has undermined confidence and elevated risks to the economic stability.”

The four-year loan still needs to be approved by the IMF’s executive board, which is due to review the terms by the end of March.

By then, the government in Kingston will need to have carried out necessary economic and fiscal reforms, and to have won a “high rate of participation of private creditors” in the debt swap.

“If this debt is not reduced, Jamaica faces a dismal future,” Prime Minister Portia Simpson Miller said on Jamaican TV on Monday night, explaining the need for the swap.

About 55% of government spending goes towards paying the nation’s debt, while 25% goes on wages. That leaves just 20% for everything else – including education, security and health.

The swap is likely to result in a significantly lower interest rate being paid by Jamaica to its lenders.

The relatively high current interest rate reflects the low expectations of lenders that the government will ever be able to repay its existing debts in full.

Lenders have already been hit once – it is the second such debt swap by Jamaica in three years.


jamaica joins the growing harem of the IMF..now owned well and truly..

“labour market reforms” = cheap wages..as always..


~ by seeker401 on February 18, 2013.

9 Responses to “Jamaica agrees to $750m IMF loan terms and joins the harem”

  1. the disconnect between the leadership and the people in jamaica is more than many of the countries i have seen. if you read one of the main newspapers out of kingston, it’s seems complete distant from the visible reality around you. there are advice columns written by dear abby types, reviews of things in faraway places, and appeals to the very tiny yuppie class. one of the stories when i was there in 2012 was about a new member of parliment who had braids (gasp!) and said a single phrase in jamaican patois while on the floor of the parliment (omg!) … which demonstrated who ‘in tune’ he was with ‘the youth.’ … this is in a country where 90%+ of the people speak patois in their day to day life…

    this is also a country where 80% of the population has used or tried cannabis. and yet it is still illegal. they could legalize it and become a center for production and refinement into goods and medicines, and they would not need any IMF loans. wont hold my breath…

  2. They must have something that can be plundered when they fail to make the IMF payments (ala Confessions of an Economic Hitman).
    I can’t think what it is, there’s no oil or diamonds there.

  3. Rise up this mornin’,
    Smiled with the risin’ sun,
    Three little birds
    Each by my doorstep
    Singin’ sweet songs
    Of melodies pure and true,
    Singin’: “Don’t worry about a thing,
    ‘Cause every little thing gonna be all right” – I won’t worry!

    • That day will come…
      when I shall stand and see all those wicked men – in the fiyah gettin bun
      That day will come…
      when they will try to escape and there will be nowhere to run
      That day will come…
      when I shall see, they hand in all the bombs and bayonnettes and bullets and gun
      That day will come…
      when Emperor Selassie I shall rise di whole a di ghetto yute dem from outta di slum

      And that day I would love to see them face
      For the all those evil they do to the human race
      And try to take things out of place
      Run away to space, true dem inna…

      Off you owna judgement, you a go get a taste
      When dem find out sey dat dem caan escape
      Sadness they send on the people dem trace
      Smile on my face

  4. […] Jamaica agrees to $750m IMF loan terms and joins the harem […]

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