Damion Mitchell, Radio & Online Editior

Finance minister Dr Peter Phillips and his team of technical officers will this morning begin negotiations with officials from the International Monetary Fund (IMF) for a new loan agreement for Jamaica.

The Government has indicated that it will be pursuing a three-year medium-term agreement instead of another standby loan facility.

A medium term programme would allow for a longer repayment time.

According to the finance minister, Dr. Peter Phillips, the negotiations should end in just under two weeks.

The talks are being keenly watched by the civic, business and political communities as the failure to secure an agreement with the IMF means the country will not be able to draw down on well-needed money at cheap interest rates.

Last week, the Opposition again raised concern about Jamaica’s fiscal position following the revelation that the Net International Reserves is now down to the equivalent value of 14 weeks of imports.

This is just two weeks shy of the 12-week limit.

The Government has repeatedly indicated that addressing the issues of pension reform, public sector reform and the reduction of the debt to GDP ratio are critical to the attainment of another IMF agreement.

radio@gleanerjm.com