Question

In order to reduce the balance of payment deficits of the member countries, which one of the following schemes was introduced by the World Bank in $1980$?

• A. Buffer stock loans
• B. Supplementary loans
• C. Structural adjustment loans
• D. Gold loans

Answer 1

The correct option is C Structural adjustment loans

Structural Adjustment Lending (SAL): In $1980$, World Bank initiated Structural Adjustment Lending (SAL). The World Bank defines SAL as non-project lending to support programmes of Policy instituted change to modity the structure of the economy so that it can maintain both its growth rate and viability of its Balance of Payment (BoP) in the medium-term.