BORROWERGovernment of Antigua and Barbuda (GOAB)COUNTRYAntigua and Barbuda EXECUTING AGENCYGovernment of Antigua and Barbuda (GOAB)LOAN AMOUNT$30 mnSUMMARY OF PROJECT DESCRIPTIONThe restoration of fiscal and debt sustainability is a key policy imperative. The Policy-based Loan (PBL) will support initiatives consistent with this imperative and cover reforms in the areas of macroeconomic management, expenditure and debt management; revenue enhancement and social transformation. The proposed PBL is an integral component of a financing proposal to assist GOAB to implement its adjustment programme. The proposal involves closure of the financing gap through a combination of financing from the International Monetary Fund (IMF) and CDB and a comprehensive debt restructuring strategy. The proposed PBL reflects the policy framework developed by GOAB and which is also being used by IMF to design a loan under its Standby Arrangement (SBA). Disbursements will be made in three equal tranches and will be based on the agreed conditions set out in the Policy Matrix. BENEFITSThe direct benefits expected as a result of the PBL are: (a) improved efficiency of revenue collection; (b) managed growth in the wage bill; (c) debt and debt service payments reduced to a manageable level; (d) a well-defined and integrated framework for macroeconomic planning and public debt management; (e) a stronger institutional and legislative framework for tax administration; customs administration; and public financial management (PFM); and (f) transparent and robust social safety nets. BORROWERGovernment of Antigua and Barbuda (GOAB)COUNTRYAntigua and Barbuda EXECUTING AGENCYGovernment of Antigua and Barbuda (GOAB)LOAN AMOUNT$30 mnSUMMARY OF PROJECT DESCRIPTIONThe restoration of fiscal and debt sustainability is a key policy imperative. The Policy-based Loan (PBL) will support initiatives consistent with this imperative and cover reforms in the areas of macroeconomic management, expenditure and debt management; revenue enhancement and social transformation. The proposed PBL is an integral component of a financing proposal to assist GOAB to implement its adjustment programme. The proposal involves closure of the financing gap through a combination of financing from the International Monetary Fund (IMF) and CDB and a comprehensive debt restructuring strategy. The proposed PBL reflects the policy framework developed by GOAB and which is also being used by IMF to design a loan under its Standby Arrangement (SBA). Disbursements will be made in three equal tranches and will be based on the agreed conditions set out in the Policy Matrix. BENEFITSThe direct benefits expected as a result of the PBL are: (a) improved efficiency of revenue collection; (b) managed growth in the wage bill; (c) debt and debt service payments reduced to a manageable level; (d) a well-defined and integrated framework for macroeconomic planning and public debt management; (e) a stronger institutional and legislative framework for tax administration; customs administration; and public financial management (PFM); and (f) transparent and robust social safety nets. December 10, 2009 No. 30/09-BD Antigua and Barbuda to Receive CDB Policy-Based Loan The Board of Directors of the Caribbean Development Bank (CDB) has approved a policy-based loan in an amount equivalent to USD30 million to the Government of Antigua and Barbuda, in support of that country's National Economic and Social Transformation Plan. Restoration of fiscal and debt sustainability is a key policy imperative for the Government of Antigua and Barbuda. The policy-based loan will support initiatives consistent with this imperative, and cover reforms in the areas of macroeconomic management, expenditure and debt management; revenue enhancement and social transformation. The loan is one component of an integrated approach by the Government of Antigua and Barbuda to implement its adjustment programme. The programme involves closing the financing gap through a combination of financing from the International Monetary Fund and from CDB, as well as a comprehensive debt restructuring strategy.