The World Bank and the Inter-American Development Bank have granted Colombia a two-billion dollar loan package to help its ailing economy.

The announcement was made in Washington where the Colombian President, Andres Pastrana, is on a state visit - the first such visit for more than twenty years.

Mr Pastrana has said that Colombia is suffering its worst financial crisis in its history and needs some four-billion dollars over the next two years to support the peace process, the reduction of poverty and the eradication of illegal drug crops.

On Wednesday Colombia and the United States announced a new alliance against drugs, with Washington granting the South American country some two-hundred-and-eighty million dollars in aid.