Special Development Lending Category

The Special Development Lending (SDL) category is a budget support lending instrument aimed at contributing to address the effects of a macroeconomic crisis on a country’s economic and social progress. Through the provision of budgetary support, a special development lending, or SDL: (i) contributes to prevent policy reversals or support further efforts to strengthen a reform process in the social, institutional and economic areas; (ii) protects funding for social programs that benefit the poor; (iii) supports new efforts to mitigate the effects of the crisis on the poor and vulnerable; (iv) protects expenditures in infrastructure; and (v) facilitates access of small and medium enterprises to credit, among others.