(BBC) The Antigua and Barbuda government has agreed to cut its wage bill by 20% over the next two years, under a proposed agreement with the International Monetary Fund.

It is part of a series of tough measures designed to help haul the country out of a severe cash crisis.

Other measures to be introduced by the Baldwin Spencer administration are a reduction of the public service over five to seven years, and the outsourcing of some government services.

A statement from the Ministry of Finance said Friday that the government plans to finalise arrangements for a US $30 million loan from the Caribbean Development Bank.