WASHINGTON, USA -- The Inter-American Development Bank (IDB) has approved a $33 million loan for The Bahamas to improve the management of its public finances and procurement, and to enhance its capacity to monitor progress and implementation of key government priorities.

The Bahamas’ tourist-based economy has been growing steadily in recent years but its public finances have suffered since 2008, with growing fiscal deficits and debt levels, amid rising unemployment.

To face these challenges, the project aims to help the country get on a path of fiscal consolidation by modernizing its public financial management framework to make better use of fiscal resources.

The program will consist of four components. The first will focus on strengthening the management capacity of the public sector to monitor priority projects and programs more efficiently and effectively.

The second component will aim to bolster the ability of the government to collect data and produce quality statistics. The third component will deal with public financial management, with the objective of improving the efficiency in how public funds are allocated.

The fourth component aims to modernize the public procurement system by promoting efficient market competition and value for money.