Grant from the Economic Support Fund (ESF) to provide the Government of Jamaica (GOJ) with immediate balance of payments assistance and to support policies that foster long-term economic growth and development. The ESF funds, to be disbursed in two tranches of $11.5 million, will be used to finance private sector imports of critical raw materials, spare parts, and capital goods from the United States during FY 1987. The GOJ will deposit the U.S. dollars in a special account for that purpose and will deposit an equivalent amount of Jamaican dollars in a special account locally for use in priority GOJ development projects. As part of an ongoing, informal policy dialogue between the GOJ and USAID/J, the GOJ is expected to undertake policy reforms involving divestment of the National Commercial Bank, reform of the Companies Income Tax, and unification of investment promotion activities. PAAD of 3/20/87 (PD-KAJ-114) authorizes disbursal of the second tranche of $11.5 million ESF the GOJ. The majority of the ESF funds are expected to be used for servicing of Jamaica”s external debt.
