The United Kingdom is to write off £5 million (J$708.2 million) in debt incurred by Jamaica.

The UK minister for international development, Shahid Malik, says the debt write-off should allow the Jamaican Government to spend more on improving public services.

"Rather than the money leaving Jamaica, it can go towards key services like education, water and sanitation and security and justice that will improve the well-being of Jamaican citizens," said Malik in a release.

Since 1998, the UK has written off £51 million (J$7.13 billion) of Jamaica's debt, while giving £2.5 million (J$350 million) in additional aid every year.

Creating fiscal space

Yesterday, the minister of finance and the public service, Audley Shaw, told The Gleaner/Power 106 News that the latest debt write-off was based on the Government's efforts to address its fiscal challenges.

"It amounts to a relief which will mean that, instead us having to find that amount to service debt in the current fiscal year, it will create some fiscal space for us to do some things," said Shaw.

He further said the debt reprieve would allow the Government to focus on other areas, including measures aimed at improving the police force. "In addition to that, we are putting in place a number of initiatives that relate to debt management," he said.

The finance and public service minister is scheduled to tell the nation tomorrow how the Government plans to finance its $489 billion budget for the 2008/2009 fiscal year.

The UK debt relief for Jamaica is part of the Commonwealth Debt Initiative, which was launched in 1997. The initiative is aimed at ensuring that more resources go towards meeting the United Nation's global anti-poverty targets by 2015.