IDB approves loan to Jamaica to help address health and economic crisis caused by COVID-19


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The Inter-American Development Bank has approved a $100 million loan to help Jamaica strengthen public policies and the efficiency and effectiveness of budget management to address the health and economic crisis caused by COVID-19. 19, the financial institution announced Thursday.

This is the second operation under the programmatic policy lending (PBP) modality, which consists of two technically linked, but financially and contractually independent operations. The first was approved by the IDB in March 2021.

“The new loan will ensure the timely availability and execution of public resources to address the health crisis caused by the pandemic. It will also reinforce the counter-cyclical effect of fiscal policy with the temporary introduction of measures aimed at protecting vulnerable household incomes and increasing corporate liquidity,” the IDB said.

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Some of these measures include improvements in the targeting of the social program and the implementation of a tax credit program for micro, small and medium enterprises (MSMEs).

“IDB financing will also support reforms aimed at spurring economic and fiscal recovery in the post-pandemic period, including the establishment of an independent budget commission to oversee government spending and improvements in governance and accountability. representation of women on all boards of public bodies and in monitoring. climate-related public spending, among other measures,” the Bank added.

The operation is in line with Vision 2025 – Reinvesting in the Americas: A Decade of Opportunity, created by the IDB to achieve recovery and inclusive growth in Latin America and the Caribbean, in the areas of small and medium enterprises, of gender and inclusion. , and climate change.

The $100 million IDB loan has a 20-year maturity, a 5.5-year grace period and an interest rate based on the Secured Overnight Funding Rate (SOFR).

With a history dating back to 1959, the IDB is today the leading source of development finance for Latin America and the Caribbean. They provide loans, grants and technical assistance; and we do extensive research when needed.

The IDB prioritizes social inclusion and equality; productivity and innovation; and regional economic integration in its development work in Latin America and the Caribbean. In doing so, it addresses issues of gender equality and diversity; climate change and environmental sustainability; and institutional capacity and the rule of law.

CMC

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