CONDITIONALITY

Requirements placed on using or distributing money, most frequently associated with aid money, which is lent to another country. Countries or international organizations such as the International Monetary Fund and World Bank can impose conditionality when lending money to another nation. Conditions may range from provisions to reduce corruption to more controversial ones including improving human rights or reducing deficit spending. The country or organization may also require the receiving country that the funds must be used to finance a specific project.