Minister in the
Ministry of Finance and Public Service Senator Don Wehby is to update Cabinet Monday about his recent
visit to the International Monetary Fund (IMF) in Washington.
The visit has spawned speculation that the Government is preparing to resume a borrowing relationship with the IMF.
But Senator Wehby says the discussions with the IMF are exploratory.
"The way to look at that is let's have a talk with the IMF to see if they can give us a stand-by facility ... in other words, in the event that the worst case scenario happens, at least you have a stand-by facility to support you. That is the way that countries like Costa Rica and Guatemala have done, so it's just exploratory.
I will be reporting to the Prime Minister and to the Cabinet on Monday and then we'll discuss it from there in terms of the way forward," Senator Wehby said.
He added that Jamaica might benefit from IMF funds without resuming a borrowing relationship with the organisation.
US$300mil could be available for JA's NIR
According to Senator Wehby, Jamaica could benefit from the nearly $1 trillion in funding recently outlined by the Group 7 Nations.
"With the G-20, they allocated quite a bit of money and there is a strong possibility that Jamaica could benefit from US$300 million going to our NIR (Net International Reserves) from the IMF and that is without any formal programme because we're a member of the G-20," said Senator Wehby who was speaking at a function in St. James over the weekend.
The Government has repeatedly insisted that this not considering resuming a borrowing relationship with the IMF at this time.
However, it says it is also mindful that this may change if the local economy worsens.
IMF supports is the way to go - Stokes
And the Government is getting support for saying it may have to resume a borrowing relationship with the IMF.
During his contribution to the 2009/2010 budget debate Prime Minister Bruce Golding said the Government is prepared to engage the Opposition in talks should IMF assistance become necessary.
Business Executive Chris Stokes says the Government is facing some hard decisions and is predicting that it has no choice but to resume borrowing relationships with the IMF.
"The truth of the matter is it's coming and the sooner that we come to terms with the reality of the situation and start putting things in place the better we will be. You're deceiving yourself by thinking it may get better ... you need to realize that this is what it is and move forward.
"On the issue of conditionalities and the IMF, their experience in Latin America, the Caribbean and Africa has been very bad. I think they have learnt and are trying to change so I believe that as a country, we need to change our disposition and our psyche regarding the IMF and I think the Prime Minister has started that process," Mr. Stokes said while speaking on RJR's weekly news review programme That's a Rap on Sunday.
The visit has spawned speculation that the Government is preparing to resume a borrowing relationship with the IMF.
But Senator Wehby says the discussions with the IMF are exploratory.
"The way to look at that is let's have a talk with the IMF to see if they can give us a stand-by facility ... in other words, in the event that the worst case scenario happens, at least you have a stand-by facility to support you. That is the way that countries like Costa Rica and Guatemala have done, so it's just exploratory.
I will be reporting to the Prime Minister and to the Cabinet on Monday and then we'll discuss it from there in terms of the way forward," Senator Wehby said.
He added that Jamaica might benefit from IMF funds without resuming a borrowing relationship with the organisation.
US$300mil could be available for JA's NIR
According to Senator Wehby, Jamaica could benefit from the nearly $1 trillion in funding recently outlined by the Group 7 Nations.
"With the G-20, they allocated quite a bit of money and there is a strong possibility that Jamaica could benefit from US$300 million going to our NIR (Net International Reserves) from the IMF and that is without any formal programme because we're a member of the G-20," said Senator Wehby who was speaking at a function in St. James over the weekend.
The Government has repeatedly insisted that this not considering resuming a borrowing relationship with the IMF at this time.
However, it says it is also mindful that this may change if the local economy worsens.
IMF supports is the way to go - Stokes
And the Government is getting support for saying it may have to resume a borrowing relationship with the IMF.
During his contribution to the 2009/2010 budget debate Prime Minister Bruce Golding said the Government is prepared to engage the Opposition in talks should IMF assistance become necessary.
Business Executive Chris Stokes says the Government is facing some hard decisions and is predicting that it has no choice but to resume borrowing relationships with the IMF.
"The truth of the matter is it's coming and the sooner that we come to terms with the reality of the situation and start putting things in place the better we will be. You're deceiving yourself by thinking it may get better ... you need to realize that this is what it is and move forward.
"On the issue of conditionalities and the IMF, their experience in Latin America, the Caribbean and Africa has been very bad. I think they have learnt and are trying to change so I believe that as a country, we need to change our disposition and our psyche regarding the IMF and I think the Prime Minister has started that process," Mr. Stokes said while speaking on RJR's weekly news review programme That's a Rap on Sunday.
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