Conditionalities

Definition

Conditionalities are requirements imposed by the Bretton Woods Institutions (the International Monetary Fund and the World Bank) on countries that seek financial assistance. These stipulations often involve policy changes or reforms in the borrowing country to ensure loan repayment and promote economic stability.

Related terms

Structural Adjustment Programs (SAPs): Economic policies implemented by countries that receive financial assistance from international institutions, aimed at promoting economic stability and growth.

International Monetary Fund (IMF):

An international organization that provides loans and financial assistance to countries facing balance of payments problems, with the aim of fostering global monetary cooperation.

World Bank:

An international financial institution that offers loans and grants to the governments of poorer countries for the purpose of pursuing capital projects