Jamaica to receive trillion-dollar hurricane relief

Jamaica is set to benefit from a comprehensive package of up to US$6.7 billion (approximately J$1.06 trillion) over three years, designed to strengthen recovery and reconstruction efforts in the aftermath of Hurricane Melissa.

The funds will be facilitated through CAF - Development Bank of Latin America and the Caribbean, the Caribbean Development Bank (CDB), the Inter-American Development Bank (IDB) Group, the International Monetary Fund (IMF), and the World Bank Group (WBG). This was disclosed in a release issued by the IMF on Monday.

The coordinated effort was undertaken at the request of Prime Minister, Dr Andrew Holness, who will hold a call with representatives from the international financial institutions to discuss implementation plans. With damage estimated at US$8.8 billion, the IMF has noted that Jamaica's recovery will require significant resources and sustained long-term investments. It stated that comprehensive recovery planning is already under way, with a focus on critical priorities and the reinforcement of resilience.

"CAF, CDB, IDB Group, IMF and WBG are working closely with the Government of Jamaica and other partners to support this process," the release stated. A new financial support package of up to US$3.6 billion could be made available to finance the Government's recovery and reconstruction programme over the next three years.

This will comprise up to US$1 billion from CAF for priority areas identified by the Government of Jamaica, up to US$200 million from the CDB to support resilient national and community infrastructure and small businesses, and up to US$1 billion from the IDB in sovereign financing for priority areas where its technical expertise and long-standing engagement can have sustained impact.

Jamaica has also requested access from the IMF to financing under the large natural disaster window of the Rapid Financing Instrument, which could amount to a loan of up to US$415 million. The World Bank is also providing up to US$1 billion in sovereign financing, encompassing budget support, partial risk guarantees, and investment projects in critical sectors.