The International Monetary Fund (IMF) is set to bail out Jamaica in a deal that could inject $958 million into the cash-strapped Caribbean country.

The Washington-based IMF, according to reports on ABC, said it would recommend a new “extended loan facility” for Jamaica to its board, which will meet before the end of April.

But the IMF warned the success of the deal – which would see the cash paid out over four years – depends on taking action on improving public finances, approving reforms and ensuring its debt was sustainable.

Jamaica’s debt currently stands at more than 140 per cent of its Gross Domestic Product, with more than half of government expenditure devoted to reducing the burden.

Around 20 per cent of government cash goes on wages, leaving just 20 per cent to pay education, health, security and other services on the island, which has a population of 2.7 million.

A previous loan deal from the IMF ended in 2010 after providing around $1.27 billion in a standby loan.

Shortly after the IMF announcement, the World Bank and the Inter-American Development Bank said they had both made a preliminary allocation of $510 million each to help support the struggling Jamaican economy.

The country’s problems were worsened because – even before the recession hit in 2008 – it had one of the world’s slowest-growing economies.