|
|
Madam Speaker: On 28th November I made a statement to this Honourable House confirming receipt of (US)$75 million from the IDB representing the first tranche of a commitment of (US)$150 million to assist with final the resolution of the problems in the financial sector. I also indicated imminent receipt of (US)$12.5 million from the Caribbean Development Bank, which would be used for the same purpose as well as the fact that the management of the World Bank would be taking to its Board a complementary loan on Thursday, November 30. Madam Speaker: I have pleasure in indicating that the (US)$12½ million, representing the first tranche of the CDB loan has been received. Furthermore, I wish also to report that at its Board meeting on November 30 the World Bank approved the disbursement of the first (US)$75 million for the same purpose. This (US)$75 million loan is within the context of a total commitment of (US)$225 million to Jamaica for fiscal years 00/01 and 02. Of this amount (US)$150 million will be for the financial sector rehabilitation and (US)$75 million two the social sector projects. In terms of the commitment of resources to the social sectors, these funds will be allocated to two specific programmes. The first will be to assist with the revamping of the various programmes which comprise the country’s social safety net and the second will be a continuation of the programme for Reform of Secondary Education – Rose II. It is expected that both these programmes will be presented to the World Bank’s Board and approved during the first nine months of calendar 2001. The IDB has committed itself to co-finance the reform of the social safety net programmes. There was extensive discussion at the Board Meeting concerning the Government’s progress in addressing the problems in the financial sector with several members of the Board making contributions. The recurring theme was the concern that shareholders in financial institutions had not been asked to carry their fair share of the burden of intervention. Madam Speaker; I wish to indicate that following Board approval of the loan on November 30, there was a formal signing of the loan agreement by the Vice President of the World Bank with responsibility for Latin America and Caribbean, Mr. David de Ferranti and myself on Wednesday, December 6. My tabling of the Ministry Paper today represents the final conditionality for disbursement, which we expect to take place before the end of this year. Like the IDB loan, the first loan from the World Bank was approved within the context of this Staff Monitored Programme (SMP), which had been approved by the International Monetary Fund. As regards the SMP, the IMF and the two multilateral banks continue to collaborate with the Government in monitoring macro economic developments. In that regard, I have also tabled today the Economic Update & Outlook for Q2 (July to September) of the present fiscal year, prepared by the PIOJ. The document, as usual, presents detailed information on the performance of the economy for the calendar and fiscal years to date, whilst focussing on developments during Q2. The tabling of the document today is consistent with the commitment given by Prime Minister Patterson in his statement to Parliament two weeks ago. The document speaks for itself, but I wish to quote verbatim the final sentence of the Overview by the Director General.
Finally, I wish to indicate that additional data available for the final quarter of calendar year 2000 October 1 to present, place us in a position to confidently assert that the trends described in the review continue and that there will be positive growth in the economy this year.
|
