Economic Reform Programme gets boost THE GOVERNMENT'S Economic Reform Programme has received a boost with the European Commission (EC) providing $400 million (10 million euros) to the Ministry of Finance and Planning. Head of the European Commission in Jamaica, Gerd Jarchow, presented the cheque to Finance and Plannning Minister Dr. Omar Davies, at the Ministry, Heroes' Circle in Kingston. This is the third tranche of a grant of $1.36 billion (34 million euros) to support the Government's Economic Reform Programme. Disbursements of $484 million and $400 million (11 million and 10 million euros) were made in the second and third quarter of 2000, respectively. The other $120 million (three million euros) went toward technical assistance programmes. The billion-dollar grant was approved by the EC in 1999 to take the pressure off the discretionary budget, thereby assisting the Government to maintain levels of social and capital spending and supporting deficit reduction measures. By supporting deficit reduction, the EC's direct budgetary support will assist the Government in its crucial task of reducing its debt and the interest on expenditure in the budget. At the handing over exercise, Mr. Jarchow said the EC had decided to provide a further grant of $868 million (21.7 million euros) to the Government in appreciation for the positive economic measures put in place over the last fiscal year to achieve desired levels of poverty reduction. "This has been decided and the Commission is now preparing the financing agreement," he said. The agreement should be signed some time in September. Dr. Davies thanked the EC for its continued support of the Government's efforts at economic reform. He said the support had been consistent over the years in recognition of some of the difficulties that the country had faced and adjustment measures that have had to be put in place. "The economy, in the last nine months to a year, has demonstrated recovery and has maintained momentum and this is in no way due to the support provided by the Commission," the Minister stated. He assured Mr. Jarchow that the Government would continue policies aimed at improving the lot of the most vulnerable in the society.
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