In February 4 2010, the Government of Jamaica (GoJ) entered into a 27-month Stand-By Arrangement with the International Monetary Fund (IMF). This decision was influenced by the GoJ’s attempt to seek funds to assist it in coping with economic challenges brought on by the global financial crisis (GFC). Importantly however, many of these challenges were the result of longstanding structural weaknesses, which with the GFC had seen the GoJ being unable to unilaterally introduce recovery programmes and other measures to respond to the crisis. Among these were the crippling debt (Appendix 1); falling earnings and exports in bauxite and alumina; rising unemployment and a public sector deficit of 13 percent of GDP (2009/10 FY). A total of US$1.27 billion was promised under this fund with US$640 million being made available immediately under the fund. Jamaica has since passed its first review under the IMF Stand-By Agreement.
The country has managed to obtain some stability in its financial market thanks to the restructuring of much of its public debt under the Jamaica Debt Exchange (JDX). Gains have also been made in tax administration and collectively these offer some hope for the country’s ability to restore growth and sustainability. However, none of these measures are sufficient in and of themselves.