The Requesters claimed the reforms financed through the Credit Agreement were flawed, especially because of manufacturing closures, loss of finance, macroeconomic stability measures, and wage changes; the delays in implementation actually made the situation worse; and they were not properly consulted in the design and implementation stages of the operation.
Although the case met all the eligibility requirements, the Panel decided not to recommend an investigation because of developments that took place during the eligibility phase, which included the Bank’s intention to cancel the outstanding credit for reasons of non-compliance that were similar to those argued by the requesters.
Inspection Panel process completed.
Policies and Procedures raised in Request:
- Adjustment lending policy (OD 8.60)
- Project supervision (OP 13.05)
- Suspension of disbursements (OP 13.40)
