SALs typically focus on major macroeconomic and structural issues that cut across sectors, such as trade policy, resource mobilization, public sector management, private sector development, and social safety nets. It also supports policy reforms aimed at promoting robust and sustainable growth. It also supports government policies that redirect expenditures into social sectors and programs that specifically benefit the poor, such as health, education, and social funds. And it assists the government in maintaining macroeconomic stability in the wake of declining terms of trade and a significant drop in export earnings. Its focus is the reform of contractual savings institutions, including insurance companies, savings banks, and the pension system.
Special design features.
PSALs support the government. Monitorable indicators are built into the design of each loan in the series. PSALs respond to country needs for Bank financing and advice in support of structural and social reforms that involve continuous, incremental policy changes and institution building over several years. PSALs rely on a solid foundation of completed or parallel analytic and advisory work in these areas. These loans help countries to prevent a crisis or, if one occurs, to mitigate its adverse economic and social impacts.