The loan is at an interest rate of 1.8 per cent with a five-year break before repayment starts.

"I was told I couldn't get a two per cent loan into the country," said Finance and the Public Service Minister Audley Shaw at the signing, in dismissing his detractors.

The development policy loan will be used to support the Government's fiscal and monetary reform programme, which is aimed at containing and reducing debt, enhancing revenue and increasing the efficiency of public-sector spending and investment.

"It represents, of course, the World Bank's largest single loan to Jamaica and brings the value of the bank's current portfolio to US$217 million, the highest amount over the last four years," Shaw said.

Shaw indicated that the Government is committed to achieving a number of important and significant outcomes, including reducing the net public debt to the gross domestic product ratio.

Commenting on the observation by the head of the United States Agency for International Development, Karen Hilliard, about Jamaica's onerous tax system, Shaw warned of critical changes being contemplated to address the problem.

"When I open the Budget Debate on the 16th of April, I intend to make a significant presentation this year on the initiatives that we will take in respect of tax reform and in respect of the administrative process," he said.