The history of Jamaica’s relationship with the IMF in one graphic with a little commentary from the BOJ:
According to a 2009 Bank of Jamaica Quarterly Policy Report:
“The fundamental mission of the International Monetary Fund (IMF) is to help ensure stability in the international monetary system. It does so by keeping track of the global economy and the economies of member countries and providing financing and policy support to countries experiencing balance of payments (BOP) difficulties with the aim of remedying underlying problems. IMF financing provides a cushion that eases the adjustment policies and reforms that a country must make to correct its BOP problem and restore conditions for economic growth. The loan period can range from as short as three months to as long as 3 years, depending on the loan arrangement.
Jamaica’s Experience With The IMF
“Jamaica became a member of the IMF on 21 February 1963. In June 1963, the country entered into a one-year Stand-By Arrangement (SBA) with the Fund, which permitted drawings up to a limit of SDR 10 million. However, the Arrangement expired in June 1964, unutilized. It was not until June 1973 that the country returned to borrow from the IMF and continued various arrangements until 1996, when it terminated its borrowing arrangement. Jamaica however, remained a member of the IMF and in 2001, agreed on an Intensified Surveillance Program (ISP) – a Staff Monitored Program – with the Fund.
Jamaica’s borrowing arrangements with the Fund between 1973 and 1996 were largely aimed at correcting balance of payments problems arising from negative economic and financial trends including commodity price shocks (in particular oil), and high inflation. Whereas loans from the IMF are not available to the Government for project spending or on-lending, it was anticipated that borrowing from the IMF would create a platform for investment inflows which would lead to economic growth and development.”