Definition: Poverty reduction and growth facility
Established as the Enhanced Structural Adjustment Facility (ESAF) in 1987, enlarged and extended in 1994, and further strengthened in 1999 to make poverty reduction a key and more explicit element. The purpose of the facility is to support programs to strengthen substantially and in a sustainable manner balance of payments positions, and to foster durable growth, leading to higher living standards and a reduction in poverty. Eighty low-income countries are currently PRGF-eligible. Loans are disbursed under three-year arrangements, subject to observance of performance criteria and the completion of program reviews. Loans carry an annual interest rate of 0.5 percent, with a 5-1/2 year grace period and a 10-year maturity.
International Monetary Fund (IMF), "Online glossary of selected financial terms" (as per March 15th, 2008), International Monetary Fund, Washington D.C., 2008