World Bank Financing for Low-Income Countries

World Bank Financing for Low-Income Countries is sponsored by World Bank. The World Bank provides low-interest loans, zero to low-interest credits, and grants to developing countries, supporting investments in areas such as education, health, infrastructure, and environmental management.

The World Bank provides eligible countries access to financing through IDA grants/concessional loans and financing options such as Enclave Loans and the IDA Scale-Up Window at IBRD terms, in addition to guarantees, disaster and financial risk management solutions, and tailored advisory services.

Digitalization and Bond Market Efficiencies Reserve Management Survey Report Sustainable Fixed-Income Strategy Report 70 Years Connecting Capital Markets to Development Sustainable Development Bonds Credit Enhancement Guarantees Financial Risk Management Sustainable Finance Advisory Program Disaster Risk Management Advisory Commodity Price Risk Management Advisory Digitalization and Bond Market Efficiencies Reserve Management Survey Report Sustainable Fixed-Income Strategy Report 70 Years Connecting Capital Markets to Development Sustainable Development Bonds Credit Enhancement Guarantees Financial Risk Management Sustainable Finance Advisory Program Disaster Risk Management Advisory Commodity Price Risk Management Advisory The International Development Association (IDA) is the part of the World Bank that helps the world's poorest countries.

Overseen by 175 shareholder nations, IDA is one of the largest sources of assistance for the world's 78 poorest countries . It is the single largest source of donor funds for essential social services in these countries.

IDA aims to reduce poverty by providing grants, zero to low-interest loans (called "credits"), and other market-based products for programs that help countries invest in their futures, improve lives, and create safer, more prosperous communities around the world.

In addition to credits, IDA provides grants to countries at risk of debt distress, specialized Scale-up Windows (SUWs) for non-concessional financing, and IBRD enclave loans for eligible countries. IDA also offers various risk management solutions to clients, including contingent financing for disasters .

IDA funds are allocated to the recipient countries based on their income levels and record of success in managing their economies and ongoing IDA projects. IDA's lending terms are highly concessional, meaning that IDA credits carry no or low-interest charges. The lending terms are determined with reference to recipient countries' risk of debt distress, the level of GNI per capita, and creditworthiness.

Recipients with a high risk of debt distress receive 100 percent of their financial assistance in the form of grants, and those with a medium risk of debt distress receive 50 percent in the form of grants. Other recipients receive IDA credits on regular or blend and hard-terms with 38-year and 25-year maturities, respectively.

IDA complements the World Bank's original lending arm—the International Bank for Reconstruction and Development (IBRD) . IBRD was established to function as a self-sustaining bank and provides loans and advice to middle-income and credit-worthy low-income countries. IBRD and IDA share the same staff and headquarters and evaluate projects with the same rigorous standards.

Credits: IDA offers a range of financing products to support various equality, economic growth, job creation, higher incomes, and better living conditions in low-income countries. IDA Credits (or loans) provide financing in concessional terms at zero or very low-interest levels with maturities of between 30 to 40 years, including a 5- to 10-year grace period.

IDA-SUW: Blend and IDA-only countries can also benefit from the IDA Scale-Up Window Financing at IBRD lending terms. These resources are in addition to the regular concessional resources that countries will receive under IDA is designed to support high quality, transformational projects, country-specific or regional or both, with strong development impacts.

Such loans must be aligned with the overall debt capacities and ability of the country to manage IBRD financing. Blended Finance: IDA countries can benefit from custom financing solutions by blending funds from multiple sources for one development investment project. Grants and highly concessional loans can be combined with financing products at IBRD terms or other commercial terms to reduce the overall financing cost.

The World Bank Treasury can help advise and structure such blended finance packages. IBRD Enclave Loans: IDA countries can access additional development financing from the World Bank through secured loans, or Enclave Financing , for investment projects.

An Enclave loan is typically considered when the country seeks World Bank financing above and beyond its IDA envelope and has projects that generate positive hard currency revenues to pledge for repayment of the enclave loan. Guarantees: IDA provides Guarantees to its recipient countries to help meet their development needs and mobilize private sector financing.

IDA countries can benefit from project, credit, and policy-based guarantees to support the country's various risk management goals. Disaster Risk Management Products : These financial solutions help public sector clients increase their financial resilience to natural disasters by supporting disaster risk financing programs and offering insurance solutions.

These products are contingent on a pre-determined trigger and provide immediate financing right after a disaster event occurs. DPL Cat DDO: The Development Policy Loan with Catastrophe Drawdown Option (DPL Cat DDO) is a contingent credit line that provides financing following natural disaster events or health-related emergencies, a time when liquidity constraints are usually highest.

(Francais) World Bank Treasury Financial Products and Client Solutions team provides assistance in building capacity and developing innovative financing solutions for IDA-only members and IDA Blend countries.

The team can support countries transitioning from low-income to middle-income status, build capacity for new financing options as they graduate from grant-only to market-based financing instruments, and work on unique challenges that require specialized financial advice. The team also provides advisory for contingent and crisis financing, disaster risk transfer intermediation, and financial risk management solutions.

Additional Financing Solutions for IDA countries CRW: The Crisis Response Window (CRW) provides IDA countries with a dedicated source of additional resources to (a) respond, as a last resort, to the impact of severe natural disasters, public health emergencies, and economic crises; and (b) respond at an earlier juncture to slower-onset crises, namely disease outbreaks and food insecurity.

IRM: The Immediate Response Mechanism (IRM) complements longer-term emergency response tools available to IDA countries, such as the Crisis Response Window, offering them financial support within weeks rather than months of an emergency.

General Conditions for IDA Financing Policy: General Conditions for IBRD and IDA Financing Bank Policy: Financial Terms and Conditions of Bank Financing Bank Directive: Financial Terms and Conditions of Bank Financing General Conditions IDA Investment Project Financing General Conditions IDA Development Policy Financing General Conditions IDA Program for Results Financing Financing Solutions for IDA-Eligible Countries IBRD Enclave Loans for IDA Countries World Bank Credit Guarantee World Bank Group Guarantee Product Matrix IDA Singe Currency Concessional Lending Program IDA Non-Concessional Financing Loan Choice Worksheet World Bank's IPF DDO: A Lifeline for Malawi's Essential Commodity Imports Tanzania Leverages New IDA Financial Product to Maximize Savings A World Bank Facility makes funding affordable for countries hosting refugees Mobilizing More Money for Small Businesses in Rwanda through Innovative Blended Finance West Africa: IDA 18 Scale-Up Facility Loan Middle East & North Africa: Concessional Financing Facility Côte d’Ivoire: IBRD Enclave Lending China: Blending - Grants with Loans Frequently Asked Questions Product Notes & worksheets IDA Non-Concessional Financing Loan Choice Worksheet (English) IBRD Enclave Loans for IDA Countries Guarantee Products Matrix IDA Single Currency Concessional Lending Program IDA Development Policy Loan with Catastrophe Deferred Drawdown Option (IDA CAT DDO note) Banking Products Brochure IDA Financial Products and Advisory Services Overview Financing Solutions for IDA-Eligible Countries Solutions de financement pour les pays éligibles à l’IDA