Nov. 21, 2008 -- The government of Jamaica will adopt a reform program to improve efficiency of public expenditure by strengthening fiscal discipline and modernizing its public financial and performance management practices.

The Inter-American Development Bank will support the government's reform efforts with a $60 million loan approved by the Board of Directors on Wednesday.

The reform program combines policy initiatives and government actions in four key areas: fiscal responsibility, financial management, public procurement, and performance management and accountability.  These initiatives are critical for the coherent operation of the fiscal responsibility framework and for increasing the efficiency of public expenditure.

The Ministry of Finance and the Public Service will carry out the program. The IDB loan is for a 20-year term, with a 5-year grace period, at a variable interest rate.

This is the first of a series of three independent single-tranche operations of a fast disbursing policy-based loan, designed as a flexible and effective mechanism to support complex and long-term reforms that require sequenced actions for implementation. The following two operations are also expected to be up to the amount of $60 million each.