World Bank Loans Jamaica $100M

By the Caribbean Journal staff

The World Bank announced that its board of executive directors had approved a $100 million, 18.5-year loan to Jamaica. The loan will support a series of measures in the country aimed at enhancing fiscal and debt sustainability, increasing financial management efficiency and improving the effectiveness of the tax system.

“Jamaica is grateful for the World Bank’s continued support for the country’s economic programme,” said Finance Minister Audley Shaw.

Collecting tax has been a major issue in Jamaica, with the government working to fix what it called a cultural problem of failing to pay taxes.

“Despite the challenges created by the global crisis, Jamaica remains on the path to improving fiscal sustainability, reducing the debt overhang and accelerating growth, while striving to maintain social spending to protect the most vulnerable groups,” said Francoise Clottes, World Bank Director for the Caribbean. “This will continue to be a challenging reform agenda in the medium-term.”

This week, the World Bank also announced a partnership with the Jamaican Government to improve tourism in the country’s rural areas.