Caribzone News Highlight

Jamaica

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, says the International Monetary Fund (IMF) has responded “favorably” to the Government’s request to access the institution’s Rapid Financing Instrument (RFI).

This is part of the Administration’s measures to cushion Jamaica against the economic fallout being projected as a result of the coronavirus (COVID-19) pandemic.

He informed that virtual discussions are now underway between the Government and Fund Mission representatives, adding that “we expect our application for access to the RFI to be before the Board of the IMF in a matter of weeks”.

The RFI provides rapid financial assistance to IMF member countries facing urgent balance of payment requirements, consequent on extenuating circumstances, such as natural disasters, commodity price shocks, and emergencies resulting from fragility, without the need for a full-fledged program.

The IMF has earmarked some US$50 billion to help member countries, particularly low-income and emerging market states, to tackle challenges associated with COVID-19.

The World Bank, which has a similar facility, has also pledged funding support to affected countries.

Dr. Clarke advised that the Government is also exploring the products being offered by the World Bank as well as other multilateral institutions, such as the Inter-American Development Bank (IDB) and the Caribbean Development Bank (CDB).

He pointed out that the resources from these institutions come in the form of foreign exchange that can be used to supplement and augment Jamaica’s supply of reserves, which total some US$3.2 billion.

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Haiti

While Guyana and other Caribbean countries have received a generous donation of US$1.7 million from the USAID to help these countries respond to the COVID-19 pandemic, the government of Haiti has received funds amounting to a whopping US$16.1 million from the Trump administration to help in its COVID-19 response.

The funds from the   United States Agency for International Development (USAID) will support the Haitian government’s national Covid-19 response plan, led by the Ministry of Public Health, the Department of Civil Protection of the Ministry of the Interior, the Haitian intensive care hospital network and local organizations and international.

“The American people have a long history of helping their neighbors both at home and abroad. The United States provides aid because we believe it’s the right thing to do; we also provide assistance as a matter of pragmatism. If we can help countries contain outbreaks, we’ll save lives abroad and at home in the United States,” said US Ambassador to Haiti, Michèle Sison.

In presenting the commitment of an additional $1.7 million (USD) to mitigate the spread of the COVID-19 outbreak in Guyana and the rest of the Caribbean, US Ambassador to Guyana Sarah-Ann Lynch said “The United States Government is committed to assisting the people of Guyana to combat the spread of COVID-19 to prevent illness and deaths associated with the dreaded pandemic and ultimately improve the quality of life and the economic outcomes of this wonderful country and its people.”

Through this assistance, USAID will support Infection prevention and control in health-care facilities; Communications to help educate people on steps they can take to prevent and respond to the spread of the virus, through country-specific media campaigns; Surveillance and rapid response with case-finding and event-based surveillance for COVID-19. USAID also helps countries train and support rapid-response teams to investigate cases and conduct contact tracing.

To date, the number of active cases in Haiti now stands at 61 cases.

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Regional

The Executive Board of the International Monetary Fund (IMF) approved disbursements to Dominica, Grenada, and St. Lucia following their requests under the Rapid Credit Facility (RCF) mechanism, with a combined SDR 48 million (US$65.6 million), to help cover their balance of

Payment needs stemming from the outbreak of the COVID-19 pandemic.

Disbursements to all three countries are set at the maximum available access under the RCF instrument of 100 percent of quota for Grenada (SDR 16.4 million or US$ 22.4 million) and St. Lucia (SDR 21.4 million or US$ 29.2 million), and 89.4 percent of quota for Dominica (SDR 10.3 million or US$14 million).

These countries are small states that are very vulnerable to shocks, including large natural disasters, with Dominica in particular still recovering from the devastation of Hurricane Maria in 2017.

The pandemic has hit these largely tourism-dependent countries very hard. Tourism inflows essentially came to a halt in mid-March, 2020, with ripple effects across other sectors. The closure of the borders, coupled with the curtailment of commercial activity, has had a debilitating impact on these economies.

A drop in fiscal revenues, combined with additional direct health and social expenditures will temporarily increase the fiscal deficit and financing needs. IMF support will help cover some of these needs and allow the governments to ease the impact on the population, such as upgrading public health facilities and providing social assistance to the vulnerable and adversely affected sectors.

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Guyana

The government of the Republic of Guyana has received an initial shipment of Personal Protective Equipment from the People’s Republic of China as well as funding from the government of the United States, in an effort to stop the spread of the novel coronavirus (COVID-19) in that country,

Permanent Secretary (PS) Collette Adams accepted the supplies which included protective face masks, PPEs and 100 infrared thermometers, medical goggles, disposable gloves and isolation shoe covers.

Director of the Department of International Cooperation at the Ministry of Foreign Affairs, Forbes July, explained that the timely gesture by the Chinese government is as a result of the countries’ international bond.

In his remarks, Deputy Chief of Mission at the Chinese Embassy, Chen Xilai, also noted the relationship between the two countries which dates back to 1972 and emphasized the necessity for the two nations to collaborate to fight the pandemic.

Further assistance from the People’s Republic of China, is forthcoming as an estimated 30,000 masks and a number of ventilators and other essential medical equipment are on their way to Guyana.

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Sports…

Soccer

Football’s world governing body FIFA said it is proposing five substitutions per match when football resumes, to help players cope with the increase in the number of games.

The world governing body has sent its proposal to the International Football Association Board (IFAB), the guardian of the laws of the game, which has to approve it before it can be implemented by national leagues, a FIFA spokesman said.

To address these concerns, FIFA has made a proposal to the IFAB to “temporarily relax Law 3 of the game to allow for a greater number of substitutions. Each team could make five substitutions during regulation time plus a sixth substitution during overtime”.

The proposal would need to be studied quickly by the IFAB as some leagues are planning to resume, after stopping play because of the novel coronavirus pandemic, in early May.

The measure could remain in force throughout the 2020-2021 season and also apply “in theory” during next summer's European championships, according to a source close to FIFA.

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The Olympic Games

The head of the International Olympic Committee’s (IOC) coordination commission for the Tokyo Olympics said last week, he disagrees with suggestions by some scientists and doctors that a vaccine for COVID-19 is needed to hold the Games.

John Coates, an Australian lawyer, and IOC member, said he had seen the opinion but did not agree.

“The advice we’re getting from WHO (World Health Organization) says we should continue to plan for this date and that is what we’re doing, and that’s not contingent on a vaccine,” Coates told the Australian Associated Press. “A vaccine would be nice. But we will just continue to be guided by WHO and the Japanese health authorities.”

Last Tuesday, Japan Medical Association President Yoshitake Yokokura said it would only be possible for the Olympics to go ahead in July 2021, if the infections were under control, not only in Japan but globally.

“In my view, it would be difficult to hold the Olympics unless effective vaccines are developed,” Yokokura said.

Coates offered no details about how 11,000 Olympians and 4,400 Paralympians from more than 200 nations and territories could safely enter – and exit – Japan without spreading the virus. They would be housed together in the Athletes Village.

The IOC, which has approximately $1 billion (926 million euros) in reserves, took the historic decision to postpone the Games until July 23 to August 8, 2021.

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