THE PAKISTAN DEVELOPMENT REVIEW
The Estimation of the Grant Element of Loans Reconsidered
This paper examines critically the formulae which are frequently used in the calculations of the grant element of loans. Given the formula derived by Beenhakker (1976), which has been expanded into a more general form, the grant element of foreign assistance received by the Sudan during the period 1958-1979 is calculated. The grant element· was found to be low, reflecting hard terms of borrowing.