Lingering concerns about investing in Jamaica, whose sub-investment grade credit rating is under pressure, can be mitigated through a partial risk guarantee of these diaspora bonds from either the World Bank, or the International Development Association (IDA), or the Multilateral Investment Guarantee Agency (MIGA).
They included lengthening of the maximum maturity of refinancing operations, extension of the eligible collateral list, provision of liquidity in foreign currencies, covered bond purchases, and, above all, provision of unlimited liquidity in all refinancing operations at a fixed rate. Enhanced credit support fostered a considerable improvement in market liquidity and helped to alleviate funding risks.