The Fiscal and Debt Sustainability Development Policy Loan, as the funds are being called, will support a broad programme of measures to control overall public-sector balances and debt, reduce distortions and improve the efficiency of the tax system.

Minister of Finance and the Public Service Audley Shaw says the loan will help to reduce the country's debt.

"We recognise that without reducing debt and controlling debt creation, public investment and social needs, such as improving health, education and addressing crime and violence, will not be met," Shaw said.

Government is to sign the formal agreement with the World Bank.

The loan will support, among other things, Government's divestment of loss-making and commercial public entities, as well as efforts to consolidate the Budget. It will also support accounting and financial reporting and mechanisms to control spending.