structural adjustment loans

Structural adjustment loans are loans provided by international finance institutions, such as the International Monetary Fund (IMF) and the World Bank, to help countries that are facing economic difficulty. The loans are usually contingent on the recipient countries introducing reforms to their economic and social policies. These reforms typically include fiscal and monetary policy adjustments, trade liberalization, the privatization of certain services, the removal of subsidies and the opening of markets to foreign competition, among other measures. The objective of structural adjustment loans is to enable countries to restore macroeconomic stability, reduce their dependence on foreign aid and to promote economic growth in the long term.