International Monetary Fund. External Relations Dept.
The IMF’s traditional lending was designed to help countries weather short-term balance of payments crises. The severity of the problems faced by poor and often highly indebted countries in the 1980s, however, prompted the IMF to create longer-term and more concessional financing arrangements. The Structural Adjustment Facility (SAF) established in 1986 and the Enhanced Structural Adjustment Facility (ESAF) in 1987 were designed to help these countries undertake extensive reforms of their economies as well as macroeconomic adjustment.