The economy continued to show stability despite the effects of COVID-19.
• The lowest levels of interest rates for mortgages and consumer loans in the history of Jamaica.
• The most stable period of low inflation to benefit consumers and fixed
income earners.
• Abolition of the minimum business tax and the intro- duction of the $375,000 MSME tax credit.
• 1.5 per cent reduction in General Consumption Tax.
• 7.8 per cent growth in agriculture, forestry and fishing and 2.2 per cent in manufacturing during the March quarter.
• Net International Reserves totalling over US$3 billion.
Global Ratings
• Fitch Rating Agency and Standard and Poor’s affirmed Jamaica’s ‘B+’ rating.
Rapid Financing Instrument
• The International Monetary Fund (IMF) Executive Board approved a US$520 million disbursement to Jamaica, under the entity’s Rapid Financing Instrument (RFI), in response to the Government’s request to access the facility as part of COVID-19 precautionary safeguards.
Bank of Jamaica Safeguards
• The provision of $76 billion (four per cent of GDP) in
Jamaican dollar support, and direct foreign exchange sales to authorised dealers and cambios, with daily purchases averaging US$30.4 million between March and November.
• Foreign exchange sales, totalling US$242.3 million, via the B-FXITT platform since March to make up for market shortfalls.
• Facilitation of the real-time gross settlement system, which enables electronic payments, in collaboration with commercial banks to prevent disruption in critical services.
• Maintaining the policy rate offered on overnight placements by deposit-taking institutions at 0.50 per cent.
Multilateral Support
• $262-million Japan Economic and Social Development Programme grant to purchase medical equipment and supplies in response to COVID-19.
TransJamaica Highway Limited IPO
• A total of 36,428 applications were received for the Initial Public Offering (IPO), which opened on February 17 with eight billion shares and was upsized to 10 billion shares as a result of oversubscription. The shares were priced at $1.41 each, and saw the venture yielding more than $14 billion.
CAP Commercial Agreement
• Clarendon Alumina Production Limited (CAP) reached a commercial agreement with its partner in the unincorporated Jamalco joint venture – the Noble Group.
• Under the terms, CAP will, among other things, repay debt obligations totalling approximately US$136.7 million to the Noble Group, via Government loan.
• Additionally, Noble’s loan security arrangement will be released on repayment of the debt.
