The World Bank has approved of financing of US$150 million for the Jamaica COVID-19 Response and Recovery Development Policy Loan.
The sum is set to out to help the government protect the poor and vulnerable, support sustainable business growth and job creation, and strengthen policies and institutions for resilient recovery. The COVID-19 pandemic has led to the Caribbean island’s deepest economic contraction in decades due, in part, to the drop in tourism earnings, which account for more than 30 per cent of Gross Domestic Product (GDP), and one-third of jobs.
Ozan Sevimli, World Bank Resident Representative for Jamaica and Guyana, said: “COVID-19 has had widespread socio-economic impacts and affected every Jamaican, especially the most vulnerable. This financing contributes to Jamaica’s efforts to manage the impact of the crisis and move forward towards a resilient recovery.
“The operation supports the expansion of the country’s social protection programmes to benefit women and men who are disproportionately affected by the crisis and introduces a social pension for the elderly. It also supports measures for the recovery of affected businesses.”
The new loan supports the government in providing emergency financial assistance to the vulnerable population impacted by the pandemic. It also includes initiatives to help firms cope with the economic shock, such as through measures like the provision of grants and cash transfers to affected businesses.
“The operation supports reforms to strengthen financial institutions for sustainable economic recovery and greater climate resilience. The financing supports Jamaica’s climate change priorities, including the adoption of stronger commitments on greenhouse gas emissions,” the World Bank added.
The sum will help the government protect the poor and vulnerable, support sustainable business growth and job creation, and strengthen policies and institutions for resilient recovery.
