Final answer:
Adjustment loans are loans given by the World Bank or IMF to countries to restructure their debt. They have strict financial and budgetary obligations and require the receiving country to open up their economy to private investment.
Step-by-step explanation:
Adjustment loans are loans provided by the World Bank or IMF to countries in order to restructure their debt. These loans come with strict financial and budgetary obligations and require the receiving country to open up their economy to private investment.
The changes that the IMF and World Bank require are known as Structural Adjustment Programs, which typically include deregulation, privatization, and removal of trade barriers. These programs have been criticized by debtor nations as being more beneficial for the lenders in developed industrialized nations rather than for borrowers in the developing world.