What Is Enhanced Structural Adjustment Facility of World Bank?


World Bank 1


Enhanced Structural Adjustment Facility (ESAF): In order to increase the availability of concessional resources to the low income member countries,ESAF was established in December 1987. It provides new concessional resources of SDR 6 billion which will be financed by special loans and contributions from developed and OPEC countries. The purposes for advancing the amount is same, i.e., to reduce balance of payment deficits of borrowing member countries and encourage growth. The interest rate charged by t6he Bank is 0.5 per cent to be repaid in ten semi-annual installments beginning after 5½ years of disbursements.



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