Tyrone Reid, Staff ReporterTHE INTERNATIONAL Monetary Fund (IMF) and the World Bank have given the nation's credit unions high marks in their recently concluded review of Jamaica's financial sector.
The revelation was made by Dr. Omar Davies, Minister of Finance and Planning, at City of Kingston's (COK) 39th Annual General Meeting yesterday at the Hilton Kingston hotel.
Dr. Davies disclosed that the IMF and the World Bank had singled out and lauded the nature and operation of local credit unions and advised that it be preserved.
"The IMF and World Bank recently concluded a thorough review of the financial system of Jamaica and the credit union movement was specifically mentioned and they urged as a recommendation that we quickly complete the negotiations, but we must preserve the unique nature of the credit union movement," Dr. Davies revealed during his address to the AGM.
The Finance Minister assured the gathering that he would be acting on the advice of the IMF and World Bank to ensure that the essence of the particular nature of the credit union movement is preserved. "It is a sentiment, which we all agree on. Certainly that is recognised and I give you the firm commitment that that will be done."
REVIEW PLANS
The IMF's endorsement comes against the background of plans by the financial authorities to review the status of credit unions vis-a-vis the central bank. Yesterday, Davies disclosed that the Government is nearing completion of a document that would detail "the future of the role of the league and the credit union movement."
Additionally, Dr. Davies called on the credit unions to consider getting involved with pension fund management. He opined that credit unions are uniquely placed to become a major player in pension funds management after the advent of the new pension legislation.
He also urged the credit unions to get involved in the debate centred on the manner in which salary-related deductions are collected. Dr. Davies also revealed that a proposal is on the table to stop the education tax from going to the Consolidated Fund.
"Our proposal would be that percentage does not go into consolidated fund but would be combined with an overall fund for improvement of education and training system," he said.
He also encouraged credit unions to get involved with the discussions surrounding "whether it would be justified to have some reallocation to the area of education and training."
