The enhancement of the IMF’s structural adjustment facility is discussed. In its April 1987 meeting, the IMF’s Interim Committee highlighted the plight of low-income countries, and outlined a strategy for their recovery. It emphasized that it is crucial for these countries to implement reforms that to be fully effective, will need to be accompanied by the timely provision of additional financing on appropriate concessional terms to support these reforms. The Committee also called upon creditor governments to grant exceptional relief with respect to official credits in highly indebted low-income countries.

Abstract

The enhancement of the IMF’s structural adjustment facility is discussed. In its April 1987 meeting, the IMF’s Interim Committee highlighted the plight of low-income countries, and outlined a strategy for their recovery. It emphasized that it is crucial for these countries to implement reforms that to be fully effective, will need to be accompanied by the timely provision of additional financing on appropriate concessional terms to support these reforms. The Committee also called upon creditor governments to grant exceptional relief with respect to official credits in highly indebted low-income countries.

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Sources: IMF, International Financial Statistics, Supplement on Government Finance (for 1972 data) Government Finance Statistics Yearbook (for 1984 data).Note: Figures have been rounded.1 Comprises general public services and other purposes, a residual category that includes public dept interest payments among others. For both industrial and developing countries incressed payments represented much of the increase in this category.2 Outisys include expenditure plus lending minus repayments.3 Landing comprises acquisition of claims on others—both loans and equities—undertaken for purposes of public policy.
Finance & Development, September 1987
Author: International Monetary Fund. External Relations Dept.