THE INTERNATIONAL Monetary Fund (IMF) has accepted an 'invitation' from Jamaica to help devise an economic plan aimed at containing the burgeoning public debt and reduce the cost of servicing the debt over the medium term.
Prime Minister P.J. Patterson revealed the new agreement, which will replace the discontinued Staff Monitored Programme (SMP), during yesterday's post-Cabinet press briefing at Jamaica House.
The procedure will be similar to a programme that currently exists between the IMF and Lebanon which has a similar debt problem, and will include the IMF's monitoring of a comprehensive plan drawn up for the economy by the Government.
International agencies are now helping Lebanon raise some US$4 billion of cheap debt to reduce its debt servicing costs, on total debt of some $30 billion.
"These reports, unlike those of the SMP, will make it clear that the economic and fiscal objectives will be those of the Government of Jamaica, and certainly not those of the IMF," Mr. Patterson said.
The IMF will monitor Jamaica's progress on a quarterly basis. The new agreement takes effect in March on the request of Finance Minister Dr. Omar Davies. The IMF had suggested a date after April 15 when the new Budget is scheduled to be presented.
