Programmatic Financial & Public Sector Adjustment Loan 3 (PFPSAL 3)

closed

Closed

The proposed Programmatic Financial and Public Sector Adjustment Loan (PFPSAL III) is the third in a series of programmatic loans since 2001 in support of the Government's comprehensive reform of the financial and public sectors. Under the PFPSAL program, the World Bank (WB) intends to disburse a total of US$2.55 billion in adjustment lending to meet Turkey's external and budgetary financing requirements to support the Government's short and medium-term reform goals in the financial and public sectors, and to help protect critical social spending. The PFPSAL III follows on the first PFPSAL of US$1.1 billion approved in July 2001 (US$700 million on standard IBRD terms and US$400 million on Special Structural Adjustment Loan-SSAL-terms) and disbursed in a single tranche in July 200 1. The three-tranche Second Programmatic Financial and Public Sector Adjustment Loan (PFPSAL II) of US$1.35 billion (US$550 million on standard IBRD terms and US$800 million on SSAL terms) was approved in April 2002. The first US$450 million tranche of PFPSAL II was disbursed upon effectiveness in August 2002. However, disbursement of the remaining tranches of PFPSAL II was delayed by a slowdown in implementation of the economic reform program during the run-up to early legislative elections held in November 2002 and establishment of the new Government. Further delays resulted from external developments in the region, notably in Iraq. The undisbursed amounts under PFPSAL II were cancelled in June 2003 at the authorities' request.

FY17 - Financial Sector,FY17 - Public Administration

World Bank Group

Project

Education, Commercial, Government