First test un­der SBA in March

Jamaica Gleaner - - BUSINESS - Busi­ness@glean­erjm.com

THE FIRST re­view of the In­ter­na­tional Mon­e­tary Fund (IMF) Standby Agree­ment (SBA) with Ja­maica will be based on the quan­ti­ta­tive per­for­mance cri­te­ria for the end of De­cem­ber 2016.

The IMF is mov­ing from quar­terly re­views un­der the pre­vi­ous Ex­tended Fund Fa­cil­ity to six-monthly bind­ing per­for­mance tar­gets un­der the SBA.

How­ever, in the in­ter­me­di­ate quar­ters, the Fund has set in­dica­tive tar­gets “to sort of guide where pol­icy should be go­ing in or­der to meet tar­gets for the next re­view,” Mis­sion Chief to Ja­maica, Uma Ra­makr­ish­nan, said last week.

Un­der the 36-month SBA, which was ap­proved on November 11, the test date for the six-monthly re­views are to be un­der­taken at the end of De­cem­ber and end of June, she said.

The first re­view will be based on the De­cem­ber 2016 out-turn for all the vari­ables. “So the first re­view that we will take to the board will be based on that tar­get” and the ex­ec­u­tive board could make its de­ci­sion in March or April of 2017, Ra­makr­ish­nan said.

An IMF re­view mis­sion is there­fore ex­pected to come to Ja­maica for the first assess­ment un­der the SBA some­time in Fe­bru­ary or early March 2017.

Sub­se­quent to that, the next test date will be for end of June 2017 and the fol­low-up mis­sion for that will come six weeks af­ter that, or about mid to late Au­gust.

The first re­view will be based on the De­cem­ber 2016 out-turn for all the vari­ables.

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