NEWS OF THE DAY

Jamaica to receive over US$1 billion from IMF

Jamaica is to receive more than US$1 billion from the International Monetary Fund (IMF) after the fund’s executive board concluded the third reviews yesterday under the country’s Precautionary and Liquidity Line (PLL) and the Resilience and Sustainability Facility (RSF).

The PLL and the RSF were approved in March 2023, with access of Special Drawing Rights (SDR) $727.51 million and SDR $574.35 million, respectively.

The completion of third reviews makes available the remaining SDR $191.45 million (US$258 million) under the RSF and SDR $727.51 million (US$980 million) under the PLL.

The IMF said that the PLL continues to be treated as precautionary.

It said that Jamaica’s response to recent shocks has strengthened the credibility of policy frameworks, supporting an economic environment characterised by sustained growth, declining debt, low inflation, and a strengthened external position.

Jamaica has continued to implement an ambitious reform agenda that strengthened the fiscal and financial policy frameworks and the climate policy agenda, to make the economy more resilient to climate change.

In the 2023-24 financial year, Jamaica’s economy is estimated to have grown at about two per cent, with tourism above pre-pandemic levels and a continued recovery in mining. Unemployment has fallen and the economy is in a strong cyclical position. Inflation has returned to the Bank of Jamaica’s (BOJ’s) target band and the external position has strengthened with a current account surplus, rising foreign direct investment (FDI), and ample international reserves, which at end-March 2024 reached about US$5.2 billion, the highest level in Jamaica’s history.

Going forward, GDP growth is expected to converge to potential and inflation to return to the mid-point of the target band.

The IMF said that the external position is expected to remain strong and that, guided by the authorities’ Medium-Term Fiscal Framework (MTFF), public debt is expected to fall below 60 per cent of gross domestic product (GDP) by the financial year 2027-28.

“Risks to the outlook are arising from potential global economic and financial shocks and natural disasters, which are mitigated by strong policy frameworks, the authorities’ excellent track record managing shocks, and their commitment to reforms. The impact of Hurricane Beryl raises downside risks to growth and upside risks to inflation in the near term,” the IMF said.

It said the PLL has supported the authorities’ efforts to enhance financial supervision, the crisis resolution and AML/CFT frameworks, and data adequacy. Programme performance has remained strong, and Jamaica continues to meet the PLL qualification criteria.

“All structural benchmarks were met and the BOJ overperformed on the indicative target on net international reserves. The indicative target on the fiscal balance, with a smaller than expected surplus, was marginally missed with a negligible impact on the debt consolidation plan,” the IMF said, noting that the Jamaican authorities have made progress with the action plan to improve data, including on the fiscal and external sectors.

The RSF has supported Jamaica’s ambitious agenda to make the economy more resilient to climate change, including reforms to accelerate the transition to renewables, increase resilience to climate change, enhance the climate focus in policy frameworks, strengthen the management of climate risks by financial institutions, and create an enabling environment for green financial instruments.

“All RSF reform measures were met, comprising the analysis of climate-related fiscal risks, incentives for renewable energy, reporting requirements of climate risks for financial institutions, and a framework for green-bond issuance. These efforts have the potential to catalyze climate financing going forward,” the IMF added.

Met Service monitoring tropical wave approaching the Caribbean

The Meteorological Service of Jamaica said it is monitoring the progress of a tropical wave that is set to enter the Caribbean region next week.

“It currently has a moderate chance of developing into a tropical depression by then and could increase rainfall activity for Jamaica later in the week,” the Met Service said yesterday.

According to the National Hurricane Centre (NHC) in Miami, Florida, showers and thunderstorms associated with a tropical wave over the central tropical Atlantic remain disorganised.

The NHC said gradual development of this system is possible during the next few days, and a tropical depression could form some time next week while it moves westward, reaching the Lesser Antilles on Monday and continuing across the Caribbean Sea through the middle to latter part of the week.

The NHC currently gives the disturbance a 40 per cent chance of developing into a storm within the next week.

Ingenio piano recital to raise funds for disadvantaged children

The ‘Ingenio: A Piano Recital’ will be hosted tomorrow at the University Chapel, Mona, St Andrew, under the distinguished patronage of His Excellency Olivier Guyonvarch and Madam Boulie Jeong.

Featuring renowned performer Llewellyn Sanchez-Werner, a graduate of both the Julliard School of Music and the Yale School of Music, the event aims to raise funds for the Hosanna House & Children’s Pilgrimage Trust (HCPT) and the Holy Cross Catholic Church Charities: Education Fund.

HCPT is a Catholic charity with a specific emphasis on physically challenged and disadvantaged children. The Holy Cross Catholic Church Charities: Education Fund provides assistance to children with school fees, book supplies, lunch monies as well as meals for the hungry in the Half-Way-Tree and surrounding areas.

Sanchez-Werner has performed in many countries across the world and has performed for notable individuals such as former United States President Barack Obama as well as the current United States President, Joe Biden.

“This event presents a unique opportunity to experience world-class musical performance while making a meaningful impact on the lives of vulnerable children,” the organisers said.

Jeanette HoSang has died

Jeanette Doreen HoSang, co-founder of Royal Caribbean Bakery (RCB) and Caribbean Food Delights (CFD), died yesterday at the age of 78.

The family said Jeanette died at home after a long battle with kidney and heart-related diseases.

Jeanette and husband, Vincent HoSang, formed Royal Caribbean Bakery and Caribbean Food Delights some 46 years ago, where she served as president of RCB and vice-president of CFD. Other companies they owned include JerkQ’zine and the Vincent HoSang Family Foundation.

“Mrs HoSang has left an incredible legacy, and her spirit will live on in our hearts and here at work. She is remembered as a visionary leader, wife, devoted mother, grandmother and friend who will be deeply missed. May her soul rest in peace,” her family and staff said in a statement.

Electricity issues force Bustamante Hospital to cancel elective surgeries

The management of the Bustamante Hospital for Children (BHC) yesterday said a recent power surge caused temporary disruptions to surgical services. As a result, all elective surgical procedures have been cancelled and “only urgent and emergency surgeries are being accommodated at this time”.

The hospital management said a technical team is working to resolve the issue and restore full functionality to the affected operating theatres.

In the meantime, the BHC will be rescheduling non-emergency procedures and, where appropriate, transferring urgent cases to nearby facilities.

The hospital’s management said patients and their families who have upcoming surgeries scheduled in the affected theatres will be contacted directly to provide updates and rescheduling options.

“The management of BHC, along with the South East Regional Health Authority, extends our sincere apologies for the inconvenience caused by this unexpected issue. Ensuring the safety and well-being of our patients remains our highest priority. We appreciate your understanding and patience during this time,” the BHC’s management said in a media release on Friday.