International Monetary Fund Managing Director Rodrigo de Rato (centre) arrives at the International Monetary and Financial Committee (IMFC) meeting at the IMF headquarters in Washington on Saturday. - Reuters

Finance Minister Audley Shaw has called on the World Bank and International Monetary Fund (IMF) to change their respective policy approaches Bank (WB) in the treatment of the heavily indebted countries of the Caribbean region.

According to a press release from the Finance Minister's office, Mr. Shaw issued the challenge while speaking at a breakfast hosted by the managing director of the IMF, Mr. Rodrigo de Rato. Minister Shaw said that most heavily indebted Caribbean countries, like Jamaica, do not qualify for debt forgiveness or concessionary loans as they are classified by the World Bank as Middle Income Countries. Mr. Shaw outlined that in Jamaica's case, the national debt stands at 130 per cent of GDP and currently represents 53.4 per cent of the annual budget. "Jamaica's public debt acts as an albatross around the neck of the country, severely retarding its ability to grow the economy and create good quality jobs for its citizens."

New financial mechanisms

Mr. Shaw reported that in meetings with the President of the Inter-American Development Bank, Mr. Luis Moreno and Vice-President of the World Bank, Pamela Cox, he had received an indication that the banks were willing to examine new financial mechanisms to assist Jamaica in its Debt Liability Management Programme.