Tanzania - Structural Adjustment Loan (SAL)

The Structural Adjustment Loan (SAP) is part of the donor community's collaborative effort to help the government achieve its poverty reduction objective. The loan will provide the Tanzanian Government with additional balance-of-payments support while it implements the structural reforms outlined in the 1997-1999 Economic Policy Framework Document and its Development Policy Statement. The reforms to be supported by the loan focus on the following elements: (i) streamlining public expenditure management to achieve fiscal sustainability and improve the efficiency of resource allocation; (ii) reforms of parastatal enterprises, including through the disengagement of the state and those of strategic interest; (iii) reform of the National Bank of Commerce; and (iv) rationalization of the social sector. The programme, which will be implemented over a 36-month period, is justified by the fact that it will contribute to stimulating growth through measures to promote the efficient use of budgetary resources, the broad participation of the private sector in the economy and the improvement of financial intermediation.