By not having any policy conditions other than the government's countercyclical expenditure programs, the Kazakhstan Countercyclical Support Loan (KCSL) was an effective and efficient instrument to respond to the financial crisis. While reforms to correct policy inconsistencies during crisis situations might be desirable, countries that are in the middle of financial crises would find it difficult to simultaneously undertake both crisis mitigation and reforms. What these countries need most urgently in times of financial crisis is quick and timely fiscal support to address the economic and social impact of the crisis. However, as crises open opportunities for reforms, policy dialogue should be initiated for follow-up operations. But such dialogue should not at any time delay the timely provision of financial crisis support.
Countercyclical Support Loan