What is an example of Structural Adjustment Loans?

Structural Adjustment Loans (SALs) are financial loans provided by international financial institutions, such as the International Monetary Fund (IMF) and the World Bank, to countries facing economic crises. An example is the SALs given to countries like Ghana in the 1980s, which aimed to promote economic reforms such as liberalizing trade, reducing government spending, and privatizing state-owned enterprises. These loans often come with conditions requiring the borrowing country to implement specific economic policies to foster growth and stability.