Holness: US$6.7-billion hurricane support package is ‘historic’

Prime Minister Dr. Andrew Holness has described as “unprecedented” the US$6.7 billion in coordinated development financing mobilized for Jamaica in the wake of Hurricane Melissa, noting that the scale, speed and confidence reflected in the package signal one of the most significant moments in the country’s disaster-recovery history.

- Advertisement -

Holness was addressing the House of Representatives on Tuesday, December 2, during a scheduled parliamentary statement, where he emphasized that global institutions answered Jamaica’s call with unusual urgency. “The international community has responded to Jamaica with remarkable solidarity, urgency, and confidence,” he told the House, acknowledging support that arrived even before the formal financing announcement.

The prime minister stressed that Jamaica’s ability to activate emergency instruments within days was not accidental. He pointed to years of preparedness planning that predated the hurricane season.

“Even before the announcement of this substantial international financing package, we already had in place a multi-layered disaster risk financing framework, which was the product of years of strategic planning, disciplined financial management, and proactive investment in resilience,” Holness said.

Holness also revealed that Jamaica moved to unlock emergency liquidity across several risk-financing layers almost immediately.

“Within days, Jamaica activated several instruments across our risk-financing architecture,” he said, adding that “This framework enabled rapid early response and the immediate mobilization of liquidity to meet the most urgent needs following Hurricane Melissa.”

The funds, he explained, would allow the country to rebuild without additional budget paralysis. “This is the single largest and most comprehensive development-financing package ever assembled for Jamaica. It gives us the liquidity, the fiscal space, and the multi-year investment framework required to rebuild stronger and secure our future,” he stated. He also described the milestone as historic regional diplomacy in motion: “Securing support of this magnitude within one month of Hurricane Melissa is nothing short of historic. It reflects sustained, direct and proactive engagement at the highest levels.”

The combined recovery initiative was assembled by a coalition of international financial institutions working in coordination. The participating entities include CAF – Development Bank of Latin America and the Caribbean, the Caribbean Development Bank, the Inter‑American Development Bank Group, the International Monetary Fund, and World Bank Group. Government sources also confirmed that the initiative will blend sovereign loans, emergency recovery liquidity, grants, budget-support instruments, and private-sector investment to finance a multi-year national rebuild strategy.

Even before the full support envelope was finalized, Jamaica activated its existing disaster-fund liquidity instruments, allowing the country to access US$662 million in immediate recovery funds. The breakdown, confirmed in the parliamentary brief, includes US$37 million from national contingency reserves, US$91 million released by the Caribbean Catastrophe Risk Insurance Facility following damage verification, US$150 million drawn from a World Bank catastrophe bond, US$300 million from the IDB’s Contingent Credit Facility, and US$42 million under the World Bank’s Catastrophe Deferred Drawdown Option, which is scalable to US$84 million if required.

The disaster impact report shared in the address also estimates national damages at US$8.8 billion, underscoring the need for sustained borrowing and private capital participation. Holness noted that recovery planning is already in motion, focusing on long-term infrastructure resilience, agricultural restoration, fiscal flexibility, and support for vulnerable households.

Beyond the US$6.7-billion pool, institutions are preparing an additional US$3.6-billion financing window to support the government’s recovery and reconstruction programme over the next three years. According to the multilateral summary submitted to Parliament, CAF is making available up to US$1 billion for government-priority sectors. The Caribbean Development Bank has allocated up to US$200 million for resilient infrastructure and small-business revival. The IDB is providing a further US$1 billion in sovereign financing. The IMF is extending up to US$415 million under the Rapid Financing Instrument large natural-disaster window, while the World Bank is contributing up to US$1 billion in budget support, risk guarantees and national investment rebuilding projects.

In addition to financial liquidity, technical assistance grants totaling US$12 million have already been mobilized by the participating institutions, including the IDB Invest, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). The agencies are targeting an additional US$2.4 billion in private capital mobilization to join public reconstruction resources while preserving national fiscal space. The prime minister confirmed that international partners will also provide structured advisory support to maintain economic stability while rebuilding.

Holness is scheduled to meet directly with representatives from the financing coalition in the coming days to discuss implementation and disbursement planning. However, he closed by stressing to the House that the magnitude of the global response reflects confidence in Jamaica’s resilience path, both economically and socially.