In an unprecedented move, international financial institutions have pledged a monumental $6.7 billion financing package to support Jamaica’s recovery from the devastation wrought by Hurricane Melissa. The Category 5 hurricane struck the island’s southwestern region on October 28 with catastrophic winds exceeding 185 mph, causing preliminary damage estimates of $8.8 billion.
The coordinated three-year assistance program represents the largest development financing package ever assembled for Jamaica, involving the International Monetary Fund, World Bank Group, Inter-American Development Bank, Development Bank of Latin America and the Caribbean, and the Caribbean Development Bank. Prime Minister Andrew Holness characterized the rapid mobilization of funds within one month of the disaster as “historic” and a testament to Jamaica’s strengthened international credibility.
According to Holness, this extraordinary support reflects global confidence in Jamaica’s governance framework, built through years of disciplined fiscal management, debt reduction, and institutional strengthening. “Jamaica today stands as a credible, responsible, and trustworthy sovereign,” Holness stated during an address to the House of Representatives, emphasizing that the nation’s hard-earned reputation enabled this rapid response during its time of greatest need.
The recovery strategy will unfold through three comprehensive phases. The initial stabilization phase focuses on restoring essential services including electricity, water, connectivity, emergency shelter, and transportation infrastructure. As conditions stabilize, relief efforts will transition from physical distribution to targeted financial support through voucher systems.
The second phase addresses economic and social recovery through school reopenings, healthcare facility restoration, and support for agricultural sectors, small businesses, and tourism operators. Particular emphasis will be placed on micro, small, and medium-sized enterprises (MSMEs), which Holness identified as the backbone of Jamaica’s economy. The Development Bank of Jamaica has launched a Business Recovery Programme with $3 billion in initial funding for the 2025/26 fiscal year.
The final reconstruction phase will focus on climate-resilient rebuilding with future-proofed infrastructure designed to withstand environmental challenges. Holness emphasized that reconstruction efforts will serve as a growth-inducing strategy, creating employment opportunities, attracting private investment, and ultimately repositioning Jamaica as a modern, competitive economy capable of weathering future climate shocks.