The Special Development Fund (SDF/the Fund) was established in 1970 and is the Bank’s largest pool of “soft” funds. This facility offers loans on “softer” terms and conditions than those that are applied in the Bank’s ordinary operations, i.e. longer maturities and grace periods and lower interest rates. However, the Fund offered an assortment of terms and conditions which were fixed by the Fund’s various contributors. These differing terms and conditions created a number of complexities and inefficiencies in the Fund’s operation, which prompted the decision to set up a fund with a uniform set of rules.