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El Salvador - Second Structural Adjustment Loan Project (English)

Ratings for the Second Structural Adjustment Loan Project for El Salvador were as follows: outcomes were highly satisfactory, project sustainability was likely, Bank performance was highly satisfactory, and Borrower performance was also highly satisfactory. Some lessons learned included: as in any adjustment program, Borrower ownership is critical. Because of the Government's strong commitment to the reforms supported by SAL II, the negotiation and implementation of the program was achieved in an environment of mutual confidence. The success of one structural adjustment operation is likely to be repeated in a follow-on operation if: (i) sequencing is appropriate; and (ii) there is continuity in the staff, both in the Government and in the Bank, working on both operations. The financial sector is highly vulnerable to structural economic changes, requiring a gradual and careful sequencing of reforms. In the case of El Salvador, banking sector reforms were well sequenced and gradual (restructuring, capitalization, and privatization of the banks, accompanied by actions to reinforce the Superintendence).




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El Salvador - Second Structural Adjustment Loan Project (English). Washington, D.C. : World Bank Group.