The Cayman Islands is asking Ronald Reagan's former budget director to help it reduce a multimillion-dollar deficit.

James C. Miller III will lead an independent panel tasked with identifying new revenue sources by yearend.

The government news agency says the British territory has promised to become less dependent on its status as a tax haven and to increase future revenues in exchange for borrowing more money.

The Cayman Islands has operated on a US$100-million deficit and negotiated up to US$465 million in bank loans.

Premier McKeeva Bush has declined to introduce property and income taxes despite urging by the British government.

Miller's appointment was announced Monday.

IMF grants DomRep US$1.7b loan

The Dominican Republic will receive an initial US$300 million from the International Monetary Fund (IMF) as part of a larger loan to boost the country's economy.

The Caribbean nation's central bank said Monday that the Washington-based international lender has approved a US$1.7-billion loan.

In exchange, the government promises to reduce tax exemptions, improve banking supervision and better manage public debt.

President Leonel Fernandez said recently that a nearly US$600-million budget deficit spurred the government to seek help from the IMF.

It is the second time the Dominican Republic has requested an IMF loan. It received nearly US$700 million to overcome a 2003 banking crisis that led to high inflation and devalued the peso.

Bahamas resort closes amid struggling tourism

A Bahamian hotel operator has closed one of his resort properties as the recession slashes occupancy rates across the vast archipelago.

Tiffany Anderson is a spokeswoman for the Xanadu Beach Resort & Marina on Grand Bahama Island.

She said Sunday that hotelier Mario Donato shuttered his 50-room Royal Palm Resorts & Suites last week and guests with reservations have been moved to the Xanadu, also owned by Donato.

It was not immediately clear how many workers have lost their jobs. A small security staff has been left at the small resort.

The closure comes as tourism struggles in the region.

Earlier this year, the Four Seasons Resort Great Exuma in the Bahamas and the Nikki Beach Resort & Spa in Turks and Caicos both closed down.

Norway pledges US$250m to protect Guyana's jungles

How much is the lush forest in the South American country of Guyana worth? At least US$30 million, if you ask Norway's government.

The European nation plans to pay Guyana that amount - and possibly up to US$250 million - if the government's fight against deforestation leads to a cut in greenhouse gas emissions and to reduced poverty.

The US environmental group Conservation International announced the agreement Monday.

Guyana is seeking up to US$580 million a year from countries and international groups to protect its 15 million hectares (37 million acres) of jungle and prevent timber companies from exploiting it.

Last year, Norway promised Brazil US$1 billion by 2015 under a similar agreement to protect the Amazon rain forest.