Under it, loans are made to low income IMF member countries undertaking three year economic reform programs to strengthen their balance of payments and improve growth prospects. From a very weak starting position, many of the countries implementing ESAF-supported programs have experienced improvements in real GDP growth, trade volume growth, and reductions in inflation and debt burdens. Operations under the ESAF commenced in December 1987 with agreements with creditors providing SDR 5.1 billion in funding for the facility. Operations under the enlarged ESAF Trust were initiated in February 1994. Work on most of the necessary arrangements for loan and subsidy contributions to the enlarged ESAF by a broad range of the IMF's membership is now essentially completed.
Some contributions are subject to legislative approval.
Figures reflect the effective value to the ESAF of direct or indirect grant contributions. Calculations are based on an assumed interest rate of 6.0 percent. Certain other contributions are to be confirmed. The interest subsidy is financed through concessional loans to the Loan Account or through the use of resources from the Subsidy Account.