The loan is being granted by the International Bank for Reconstruction and Development (IBRD) under the Trade and Competitiveness programme, and will support on-going reforms to increase growth and competitiveness.

The Development Policy Loan forms part of the financial support provided by the World Bank through a series of three Development Policy Loans, of which this is the second.

It will support the Government's economic reform programme, with specific measures aiming at improving public sector efficiency and fiscal performance, strengthening trade competitiveness, improving investment climate and democratising the economy.

The first Development Policy Loan of $30 million was disbursed in 2006.

The World Bank initiative is expected to support Mauritius as it transitions from dependence on trade preferences to open competition in the global economy.