Special Action Programme (SAP) and Structural Adjustment Facility (SAF)

Special Action Programme (SAP)

Special Action Programme (SAP) was started in 1983 to strengthen IBRD's ability to assist member countries in adjusting to the current economic environment.

Structural Adjustment Facility (SAF)

The Structural Adjustment Facility was introduced in 1985 in order to reduce the balance of payments deficits of its members while maintaining or regaining their economic growth.

Conditions for lending

An efficient regulating mechanism for ensuring transparent policies and depoliticised environment.

Adequate risk management.

Provision for long-term finance.

Increase in the share of the private sector in the country's GDP.

B.ank borrowing

The IBRD is a corporate institution whose capital is subscribed by its members. It finances its lending operations primarily from its own medium and long term borrowing in the international capital markets and currency swap agreement (CSA). The Bank also borrows under the discount note programme. It has enabled two new borrowing instruments. Central Bank Facility (CBF) borrowing inflating rate notes is meant to help IBRD to meet some of the objectives of its funding strategy.

Lending activities

The Bank lends member countries in the following ways.

By marketing or participating in loans out of its own funds.

By making or participating in direct loans out of funds raised in the market of a member.

By guaranteeing loans made by private investors.

The Bank also provides facilities to member countries through SAF and SAP.

The Bank is laying greater emphasis on developing human resources such as education, population, health, nutrition and environment.