The Inter-American Development Bank has announced US$60 million of loan support for Jamaica, saying the funds will help with the reform of how government funds are spent.

The loan will be for 20 years, with a five-year moratorium or grace period, and priced at a variable rate, the bank said.

Jamaica will be adopting a reform programme that modernises the public financial system in a way that allows the Finance Ministry to be a more efficient watchdog over spending.

The programme has four planks: 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," said the IDB in a statement following the board's approval of the loan on Wednesday.

The IDB said that Jamaica would likely receive up to US$120 million more in the future as part 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 current loan is the first of a series of three independent single-tranche operations, it said, each of which would likely receive US$60 million.

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