IMF approves disbursement of US$415 million for Jamaica to assist with hurricane recovery

The Executive Board of the International Monetary Fund (IMF) has approved a disbursement of US$415 million for Jamaica, under the Rapid Financing Instrument’s (RFI) large natural disaster window.

This was disclosed by the IMF in a release on Friday January 16.

The IMF says the US$415 million or Special Drawing Right, SDR of 306 million will help meet the urgent balance of payment needs stemming from the devastation caused by hurricane Melissa, complementing the resources currently available under Jamaica’s disaster risk financing framework.

In December 2025, the Jamaican government welcomed the announcement of a major recovery and reconstruction package of up to US$6.7 billion from international development partners, following the widespread devastation caused by the category 5 hurricane.

The government also disclosed that the country requested support under the natural disaster window of the RFI, which could provide up to US$415 million.

In its latest release detailing the approval of the requested funds, the IMF said Jamaica’s established track record of economic reforms has created buffers that are helping to address the economic fallout and reconstruction needs after hurricane Melissa.

Nevertheless, the widespread damage caused by the hurricane together with the resulting fiscal pressures and sharp decline in tourism receipts have generated a sizable balance-of-payments need in the short term.

The release said the government of Jamaica is committed to supporting the most vulnerable segments of the population in hurricane-hit areas and rebuilding of damaged infrastructure.

The IMF noted that while recognizing that the hurricane shock justifies a temporary easing of the fiscal stance, the authorities remain committed to fiscal responsibility and debt reduction once the hurricane shock has receded.

It said the authorities also continue to prioritize achieving the inflation target and ensuring financial stability.

Following the IMF executive board’s discussion on Friday, Deputy Managing Director and Chair, Mr. Bo Li, said emergency assistance under the rapid financing facility would help to support relief efforts, particularly for the most vulnerable, and accelerate the recovery.

He underscored that strong collaboration with international partners remains important.

Mr. Li added that with severe damage to agriculture, the hurricane has caused a significant negative supply shock, which is creating inflationary pressures.

He said the Bank of Jamaica’s commitment to its inflation target remains essential to anchor inflation expectations and contain second-round effects.

Mr. Li said limiting foreign exchange interventions to the prevention of disorderly market conditions is appropriate.

The deputy managing director added that continuous supervisory vigilance to ensure financial stability is warranted.