Finance Minister Dr. Nigel Clarke
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Dr. Nigel Clarke
Finance Minister Dr. Nigel Clarke is insisting the government has been trying to cushion the rising cost of living caused by the COVID-19 pandemic and the Russia-Ukraine war, but it is constrained by the need to maintain a stable economy.
Dr. Clarke says there have been interventions through various programmes targeting the most vulnerable.
The latest programme is the We CARE Energy Co-Pay under which the government pays a portion of the electricity costs for some Jamaicans over four months.
However, Dr. Clarke says the cost of intervention is putting a strain on the budget.
The We CARE programme is costing more than $700 million per month.
Speaking Monday on TVJ's Smile Jamaica programme, Dr. Clarke said the government has had to dig deep to find the additional funds to assist Jamaicans.
He argued that the unforseen Russian invasion of Ukraine as well as a blockade on grain coming from the Black Sea have caused prices to skyrocket, making this a "very challenging and difficult time".
But Dr. Clarke noted that Jamaica is doing well under the circumstances.
Opposition Leader Mark Golding has been urging the government to pause the rate of debt reduction by paying less towards it, as another option to have resources available to provide relief.
Resilience and Sustainability Trust
Dr. Clarke has also given the thumbs up to the Resilience and Sustainability Trust (RST) launched by the International Monetary Fund (IMF).
The RST offers low-cost loans to developing countries, such as Jamaica, with emergency currency or Special Drawing Rights that wealthy countries will contribute.
Dr. Clarke said the framework of the Trust will be beneficial to especially those countries in the Caribbean which are having balance of payments challenges.
The loan, he pointed out, is available for 20 years - an uncharacteristic feature for the IMF which usually lends for shorter periods of time.
In addition to the loan being available for 20 years, Dr. Clarke highlighted that repayment does not have begin until after 10 and a half years into the loan.
In an update last week, the IMF said pledges amounting to US$40 billion of the US$45 billion being sought for the Trust Fund have been received.
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