St. John's.– Antigua and Barbuda will seek support from the International Monetary Fund (IMF) after agreeing the outlines of a fiscal consolidation program, the government of the twin-island Caribbean state said on Friday.

Like other small Caribbean economies, the nation of around 85,000 people has been feeling the impact of the global economic downturn, which has reduced tourism revenues and financial remittances across the region.

The country has also suffered financial losses and job layoffs as a result of the fraud scandal surrounding Texas financier Allen Stanford, who is accused by U.S. prosecutors of using his bank on Antigua and Barbuda to orchestrate an alleged $7 billion Ponzi scheme. Stanford denies the charges and is awaiting trial in the United States.

Antigua and Barbuda's government announced it would seek an IMF standby arrangement, without specifying the amount of the possible loan, following talks this week between an IMF team and local Ministry of Finance officials.

Antigua and Barbuda's Prime Minister Baldwin Spencer said in August his country was receiving $50 million in urgent financial assistance from oil producer Venezuela.

In the recession-hit Caribbean, Dominican Republic this month reached agreement in principle with the IMF on a $1.7 billion standby loan, while Jamaica is seeking to borrow $1.2 billion from the fund.