Do PRSP countries still get structural adjustment loans?
The IMF and the Bank have renamed their lending facilities for poorer countries. The IMF has replaced its Enhanced Structural Adjustment Facility (ESAF) with the Poverty Reduction and Growth Facility (PRGF). Countries that previously were receiving ESAF loans are now receiving PRGF loans. The interest rate and repayment conditions are the same. The Bank’s Poverty Reduction Support Credit (PRSC), a lending instrument designed to support implementation of PRSPs, has been created to complement traditional adjustment loans. In fiscal year 2001/2002, roughtly 40% of World Bank lending was adjustment lending – 30% for poorer countries that get loans from the International Development Association (IDA). In addition to the PRSP, countries still need a Letter of Intent (LOI) and a Country Assistance Strategy (CAS) spelling out their targets and actions to request IMF and World Bank loans.
