Programmatic Adjustment Lending

1
Programmatic Adjustment Lending

• The Case of Brazils Programmatic
• Fiscal Structural Adjustment Loan
• Loan Background
• Why Programmatic?
• Performance
• Lessons Learned
• Presentation by Mauricio Carrizosa for
• PREM Week on June 18, 2002

2
Loan Background

• The Macro Framework The Plano Real
• The Domestic Triggers Revaluation, and Public
  Debt
• The External Triggers Mexico, Asia, and Russia
• The Reform Target Debt Sustainability
• Structural Constraints Pensions, Wages, and
  State Debt
• The Governments Program Primary Balances,
  Sub-national Debt, Pension Reform, Administrative
  Reform, and Fiscal Reform (LFR, PPA, SIAFI, and
  Debt Management)

3
Why Programmatic?

• The Options Program vrs. One-time Actions
• The Options One Loan vrs. Series of Loans
• Program Sequence of Reforms, Enactment and
  Implementation
• Series of Loans Flexibility to better
  accommodate uncertainty and autonomy

4
Performance Thus Far The Program

• Debt Stock
• Primary Balances
• Sub-national Debt
• Pension Reform
• Administrative Reform
• Fiscal Reform

5
Performance The Instrument

• Ability to Support the Program
• Flexibility and Autonomy

6
Lessons Learned (Would I do Anything Differently?)

• Choice of Program
• Preparation/Engagement
• Financial Assistance
• Implementation/Supervision
• Risks