Financing Solutions for
IDA-Eligible Countries

AUGUST 2024

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Financing Solutions for IDA-Eligible Countries

IDA: Supporting Countries Achieve Development Goals
International Development Association (IDA)•

Intertwined and overlapping crises are taking adisproportionate toll on the most vulnerable.

•

IDA provides highly concessional financing to 75
low-income countries.

•

Since 1960, IDA has provided $533 billion for
projects supporting climate benefits, education, accessto basic services, job creation, and more.

Eligibility•

IDA eligibility is mainly based on a country’s
creditworthiness, relative poverty, vulnerability andportfolio performance.

•

Creditworthiness is the ability to serve new external
debt at market interest rates over the longer term.

•

Relative poverty is defined as GNI per capita below
a threshold (GNI per capita threshold: $1,315 for FY2024).

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Financing Solutions for IDA-Eligible Countries

Why Choose
the World Bank
Treasury?
Country
Classifications
for IDA
IDA-eligible countries are classified into three groups: IDA-only, Gap, and Blend.
As countries’ per capita income increases and the risk of debt distress decreases, they gain access to different types offinancing, including more market-based products.
As countries graduate from IDA, they move on to the International Bank for Reconstruction and Development (IBRD) for
middle-income borrowers.

IDA-only Country

GNI per capita below$1,315 and/or lacking thecreditworthiness required
for IBRD borrowing.
Financing terms
depend on the risk ofdebt distress

Gap Country

Exceeding the GNI per
capita for IDA-eligibility formore than 2 consecutive
years but not yet
creditworthy to borrowfrom IBRD

Blend Country

IDA-eligible income levels
and creditworthy forsome IBRD borrowing*The GNI per capita figure is updated annually.
The Small Island Economies Exception also provides eligible Small States with per capita incomes above the IDA operational cut-off access to IDA resources.

IBRD

GNI per capita above$1,315 and consideredcreditworthy to borrowfrom IBRD

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Financing Solutions for IDA-Eligible Countries

IDA20 Allocations - Total $93 Billion
IDA Country Allocations

IDA Windows (if eligible)

Performance-Based
Allocations$54 billion

Regional Window$7.9 billion

Host Communities
and Refugees$2.4 billion

Crisis Response
Window$3.3 billion
FCV Envelope(if eligible)$8.8 billion

Scale-Up
Window$14.4 billion

Concessional

Non-concessional

Private Sector
Window$2.5 billion

Financing Solutions for IDA-Eligible Countries

IDA Windows: Additional Resources for Specific Challenges
Regional Window:

For supporting countries to find solutions to shared regional challenges, address issues of small andfragmented markets, and promote global or regional public goods.

Host Communities and Refugees Window:
For medium- to long-term development opportunities supporting both refugees and host communities.

Crisis Response Window:

For financing to respond to severe disasters, health emergencies, and economic crises, as well as
slower-onset crises like disease outbreaks and food insecurity.

Scale-up Window (SUW):

For scaling up transformational projects such as (i) Regular-SUW on IBRD terms; (ii) Shorter-maturity
Loan SUW on concessional terms.

Private Sector Window:

For mobilizing private capital in IDA-only and Fragile and Conflict-affected Situations. Blendsconcessional funds with IFC and MIGA investments/guarantees.

IBRD Enclave Loans:

For additional financing (at IBRD terms), over and above a country’s IDA allocations and windows,
for foreign exchange-generating projects where the revenue flows can be ring-fenced to service
repayments of the loan.

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Financing Solutions for IDA-Eligible Countries

Financial Advisory Services for All IDA Countries
World Bank Treasury Financial Products and Client Solutions teambuilds capacity for IDA clients.
Blended finance:
Customized financing solutions to reduce overall cost:••••

Blending grants and highly concessional loans with IBRD orcommercial financing;
Structuring and design of credit enhancement products;
Creating new sustainable financing platforms and funds;
Developing new financial products, such as performance-based
financing.

Financial risk management:
Building capacity on interest rate and currency risk management
products including IDA Scale Up Window financing and non-IDA
financing.
Commodity risk management:
Commodity hedging strategies, ranging from agriculture, energy, tominerals.

Financing Solutions for IDA-Eligible Countries

Sustainable finance:
Building capacity on climate finance strategies and new financing:
•
•
•
•
•
•

Issuing green, social, sustainable, and sustainability-linked (GSSS)
financing;
Creating frameworks and regulations;
Identifying eligible projects;
Market sounding;Investor relations;Monitoring and reporting, and more.

Disaster risk management:
Increasing financial resilience to natural disasters through:••Contingent financing;Catastrophe bonds and insurance solutions.

IDA to IBRD transition:
Helping clients understand IBRD financial products and services to ensure
a smooth transition from concessional to non-concessional financing.

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Financing Solutions for IDA-Eligible Countries

Financial Options for Unforeseen Shocks

Rapid access to general government budget
Development Policy Loanfunding in terms of a downturn in economic growthwith Deferred
Drawdown
IDA Contingent
financingproducts:or unfavorable changes in commodity prices or
Option (DPL DDO)
terms of trade.
Development Policy Loan
with Catastrophe Deferred
Drawdown Option (Cat DDO)

Immediate liquidity for the government budget tocountries to address shocks related to natural
disasters and/or health-related events, including
pandemics.

Investment Project
Financing with a Deferred
Drawdown Option (IPF DDO)

Earmarked funds for a project or a public institution
to ensure the continuity of operations, includingbackstopping institutions such as trade financefacilities, or bank guarantee funds.

Other solutions - Climate Resilient Debt Clauses:
IDA financing also offers protection for small states and small islands economies*,that are disproportionately vulnerable, against natural disasters. By including the
Climate Resilient Debt Clause (CRDC) in their credit or loan agreement, eligible
borrowers can defer principal, interest, and fee payments for severe earthquakes
and hurricanes for up to two years in case of predefined disasters.

*IBRD and IDA-eligible Small State Economies, members of Small States Forum and Small Island Developing States as defined by UN.

Financing Solutions for IDA-Eligible Countries

IN FOCUS

Shorter Maturity Loans (SMLs)

SMLs are concessional IDA resources addressing short-term financing needs post-pandemic.
They offer interest-free financing, to scale up investments for crisis response. In IDA20,
they’re available through Performance Based Allocation (PBA) or Scale-up Window (SUW).
PBA-SML••••

Eligibility: All countries except those at high risk of debt distress.
Allocation limits: 24% for IDA-only low risk, Gap, and Blend countries; 12% for IDAonly moderate risk countries.
Availability: For all sectors and financial instruments (IPF, DPF, P4R).
Flexibility: Countries manage allocation flexibly, encouraged to use within eachfiscal year.

SUW-SML••••

Eligibility: IDA-only countries at low* or moderate risk of debt distress; Gap andBlend countries, other than Small States at high risk or already in debt distress.
Allocation limits: Regional allocations in proportion to the share of Country Allocationsof eligible countries.
Availability: For all sectors and financial instruments (IPF, DPF, DPF with Cat-DDO, P4R
and Guarantees).
Flexibility: Regions can manage SUW-SML flexibly, subject to country eligibility and caps.

*Countries that are facing debt vulnerabilities - as defined for the purposes of the Sustainable Development Finance Policy - can receive
SUW-SMLs only if the agreed performance and policy actions have been implemented satisfactorily for the last FY.

9

Financing Solutions for IDA-Eligible Countries

IDA Financing Solutions by

COUNTRY GROUPS

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Financing Solutions for IDA-Eligible Countries

FINANCIAL PRODUCTS FOR

IDA-Only Countries in HIGH Risk of Debt Distress

IDA-Only countries in high risk of debt distress are mostly eligible for grants*, with a few exceptions
SOURCE OF
FUNDINGINSTRUMENTS
ELIGIBLE

IDA
PRODUCT

CONCESSIONALITY(grant element)**

GRACE
PERIODFINAL
MATURITY

INTERESTCOSTPERFORMANCEBASEDALLOCATIONSAND FCVENVELOPE

IPF, DPF & P4R

Grant

100%

Not Applicable

Not Applicable

Not Applicable

REGIONAL
WINDOW

IPF, DPF & P4R

Grant

100%

Not Applicable

Not Applicable

Not Applicable

CRISISWINDOW

IPF, DPF & P4R

Grant

100%

Not Applicable

Not Applicable

Not Applicable

WINDOW FOR HOST
COMMUNITIES ANDREFUGEES (WHR)

IPF, DPF & P4R

Grant

100%

Not Applicable

Not Applicable

Not Applicable

IBRD ENCLAVE
LOAN(if eligible)

IPF

Market based
financing

Depends on theselected financial
terms

Up to 19.5y

Up to 35y

Pricing generally
consistent with
IBRD loan

PRIVATE SECTOR
WINDOW (PSW)

BFF, LCF,
RMF, MGF***

Non-Concessional
financing

Determined by IFC and MIGA

*A cap on grants is applied for Country Allocation resources at $3b per IDA cycle, or $1b per FY, after which resources are committed on IDA regular credit terms (38-yr credits).
**The level of concessionality/grant element varies based on the currency of the loan. The figures provided here pertain to the grant element for USD loans only.
***Blended Finance Facility (BFF), Local Currency Facility (LCF), Risk Mitigation Facility (RMF), MIGA Guarantee Facility (MGF). Pricing for all PSW products determined by IFC and MIGA.

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Financing Solutions for IDA-Eligible Countries

FINANCIAL PRODUCTS FOR
SOURCE OF
FUNDINGPERFORMANCEBASEDALLOCATIONSAND FCVENVELOPE

IDA-Only Countries in MODERATE Risk of Debt Distress
IDA
PRODUCTINSTRUMENTS
ELIGIBLE

Non-SmallStates
IPF, DPF & P4R
Small States

REGIONAL
WINDOW

IPF, DPF & P4R

CRISISWINDOW

IPF, DPF & P4R

WINDOW FOR HOST
COMMUNITIES ANDREFUGEES (WHR)

IPF, DPF & P4R

IDA SCALE-UP
WINDOW

IPF, DPF & P4R

IBRD ENCLAVE
LOAN

IPF

PRIVATE SECTOR
WINDOW (PSW)

BFF, LCF,
RMF, MGF***

CONCESSIONALITY GRACE PERIOD(in year)(grant element)*

FINAL
MATURITY

INTEREST COSTAS OF
JULY 1, 2024
050-year credit

73%

10

50

12-yearconcessional SML

36%

6

12

0

Half grant and half
40-year credit
12-yearconcessional SML

61%

10

40

SDR: 0.75%
USD: 1.34%
EUR: 0.75%

36%

6

12

0

Financing terms are the same as those of the non-SML portion of the Performance Based Allocation
Financing terms are the same as those of the non-SML portion of the Performance Based Allocation**
IDA-Only countries that are subject to a Low Income Country Debt Sustainability Framework (LIC-DSF)
and at moderate risk of debt distress receive 50 percent of the WHR financing as IDA Grants and 50
percent as 50-year Credits.
Market based
Depends on the
Up to 19.5y
financingselected financial terms
Shorter Maturity
12-year6
36%
Loan (if eligible) concessional SML
Depends on theMarket based
selected financial
Up to 19.5y
financingterms
RegularNon-Concessional
financing

Up to 35y

Pricing consistent
with IBRD loan

120

Up to 35y

Pricing generally
consistent with
IBRD loan

Determined by IFC and MIGA*The level of concessionality/grant element varies based on the currency of the loan. The figures provided here pertain to the grant element for SDR loans only.
**For severe natural disasters (damages and losses > 1/3 of GDP), adjustments of financing terms are possible (based on updated Debt Sustainability Analysis in the aftermath of crisis).
***Blended Finance Facility (BFF), Local Currency Facility (LCF), Risk Mitigation Facility (RMF), MIGA Guarantee Facility (MGF). Pricing for all PSW products determined by IFC and MIGA.

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Financing Solutions for IDA-Eligible Countries

FINANCIAL PRODUCTS FOR
SOURCE OF
FUNDINGPERFORMANCEBASEDALLOCATIONSAND FCVENVELOPE

IDA
PRODUCTINSTRUMENTS
ELIGIBLE

Non-SmallStates
IPF, DPF & P4R
Small States

REGIONAL
WINDOW

IPF, DPF & P4R

CRISISWINDOW

IPF, DPF & P4R

WINDOW FOR HOST
COMMUNITIES ANDREFUGEES (WHR)

IDA-Only Countries in LOW Risk of Debt Distress

IPF, DPF & P4R

IDA SCALE-UP
WINDOW

IPF, DPF & P4R

IBRD ENCLAVE
LOAN

IPF

PRIVATE SECTOR
WINDOW (PSW)

BFF, LCF,
RMF, MGF***

CONCESSIONALITY GRACE PERIOD(in year)(grant element)*

FINAL
MATURITY

INTEREST COSTAS OF
JULY 1, 2024
SDR: 0.75%
USD: 1.37%
EUR: 0.75%

38-year credit

53%

6

38

12-yearconcessional SML

36%

6

12

0

40-year credit

61%

10

40

12-yearconcessional SML

SDR: 0.75%
USD: 1.34%
EUR: 0.75%

36%

6

12

0

Financing terms are the same as those of the non-SML portion of the Performance Based Allocation
Financing terms are the same as those of the non-SML portion of the Performance Based Allocation**
Countries that are subject to a LIC-DSF and low risk of debt distress receive 50 percent of the
WHR financing as IDA Grants and 50 percent as IDA Concessional Credits
Market based
Depends on the
Up to 19.5y
financingselected financial terms
Shorter Maturity
12-year6
36%
Loan
concessional SML
Depends on theMarket based
selected financial
Up to 19.5y
financingterms
RegularNon-Concessional
financing

Up to 35y

Pricing consistent
with IBRD loan

120

Up to 35y

Pricing generally
consistent with
IBRD loan

Determined by IFC and MIGA*The level of concessionality/grant element varies based on the currency of the loan. The figures provided here pertain to the grant element for SDR loans only.
**For severe natural disasters (damages and losses > 1/3 of GDP), adjustments of financing terms are possible (based on updated Debt Sustainability Analysis in the aftermath of crisis).
***Blended Finance Facility (BFF), Local Currency Facility (LCF), Risk Mitigation Facility (RMF), MIGA Guarantee Facility (MGF). Pricing for all PSW products determined by IFC and MIGA.

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Financing Solutions for IDA-Eligible Countries

FINANCIAL PRODUCTS FOR
SOURCE OF
FUNDINGPERFORMANCEBASEDALLOCATIONSAND FCVENVELOPE

INSTRUMENTS
ELIGIBLE

IDA
PRODUCT
Non-SmallStates

IPF, DPF & P4R
Small States

REGIONAL
WINDOW

IPF, DPF & P4R

CRISISWINDOW

IPF, DPF & P4R

WINDOW FOR HOST
COMMUNITIES ANDREFUGEES (WHR)

IDA GAP Countries

IPF, DPF & P4R

IDA SCALE-UP
WINDOW

IPF, DPF & P4R

IBRD ENCLAVE
LOAN

IPF

PRIVATE SECTOR
WINDOW (PSW)

BFF, LCF,
RMF, MGF***

CONCESSIONALITY GRACE PERIOD(grant element)*(in year)

FINAL
MATURITY

INTEREST COSTAS OF
JULY 1, 202430-year credit

35%

5

30

12-yearconcessional SML

SDR: 2.00%
USD: 2.80%
EUR: 1.40%

36%

6

12

0

40-year credit

61%

10

40

SDR: 0.75%
USD: 1.34%
EUR: 0.75%

12-yearconcessional SML

36%

6

12

0

Financing terms are the same as those of the non-SML portion of the Performance Based Allocation
Financing terms are the same as those of the non-SML portion of the Performance Based Allocation**
Gap Countries that are subject to a LIC-DSF and at moderate risk of debt distress receive 50 percent of the WHR
financing as IDA Grants and 50 percent as IDA Concessional Credits. Countries that are subject to a Market
Access Country Debt Sustainability Analysis (MAC-DSA) receive 50 percent of the WHR financing as IDA Grants
and 50 percent as IDA Concessional Credits
Market based
Depends on the
Pricing consistent
Regular
Up to 19.5y
Up to 35yfinancingselected financial termswith IBRD loan
Shorter Maturity
12-year0
12
636%
Loan (if eligible) concessional SML
Depends on the
Pricing generallyMarket based
selected financial
Up to 19.5y
Up to 35yconsistent withfinancing
terms
IBRD loan
Non-Concessional
financing

Determined by IFC and MIGA*The level of concessionality/grant element varies based on the currency of the loan. The figures provided here pertain to the grant element for SDR loans only.
**For severe natural disasters (damages and losses > 1/3 of GDP), adjustments of financing terms are possible (based on updated Debt Sustainability Analysis in the aftermath of crisis).
***Blended Finance Facility (BFF), Local Currency Facility (LCF), Risk Mitigation Facility (RMF), MIGA Guarantee Facility (MGF). Pricing for all PSW products determined by IFC and MIGA.

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Financing Solutions for IDA-Eligible Countries

FINANCIAL PRODUCTS FOR
SOURCE OF
FUNDINGPERFORMANCEBASEDALLOCATIONSAND FCVENVELOPE

INSTRUMENTS
ELIGIBLEIDA BLEND Countries
IDA
PRODUCT
Non-SmallStates

IPF, DPF & P4R
Small States

REGIONAL
WINDOW

IPF, DPF & P4R

CRISISWINDOW

IPF, DPF & P4R

WINDOW FOR HOST
IPF, DPF & P4R
COMMUNITIES ANDREFUGEES (WHR)
IDA SCALE-UP
WINDOW

IPF, DPF & P4R

IBRD ENCLAVE
LOAN

IPF

PRIVATE SECTOR
WINDOW (PSW)

BFF, LCF,
RMF, MGF***

CONCESSIONALITY(grant element)*

GRACE PERIOD
FINAL(in year)
MATURITY

INTEREST COSTAS OF
JULY 1, 202430-year credit

35%

5

30

12-yearconcessional SML

SDR: 2.00%
USD: 2.80%
EUR: 1.40%

36%

6

12

0

40-year credit

61%

10

40

SDR: 0.75%
USD: 1.34%
EUR: 0.75%

12-yearconcessional SML

36%

6

12

0

Financing terms are the same as those of the non-SML portion of the Performance Based Allocation
Financing terms are the same as those of the non-SML portion of the Performance Based Allocation**
Blend Countries that are subject to a LIC-DSF and at moderate risk of debt distress receive 50 percent of the
WHR financing as IDA Grants and 50 percent as IDA Concessional Credits. Countries that are subject to a Market
Access Country Debt Sustainability Analysis (MAC-DSA) receive 50 percent of the WHR financing as IDA Grants
and 50 percent as IDA Concessional Credits
Market based
Depends on the
Pricing consistent
Regular
Up to 19.5y
Up to 35yfinancingselected financial termswith IBRD loan
Shorter Maturity
12-year0
12
636%
Loan (if eligible) concessional SML
Depends on the
Pricing generallyMarket based
selected financial
Up to 19.5y
Up to 35yconsistent withfinancing
terms
IBRD loan
Non-Concessional financing

Determined by IFC and MIGA*The level of concessionality/grant element varies based on the currency of the loan. The figures provided here pertain to the grant element for SDR loans only.
**For severe natural disasters (damages and losses > 1/3 of GDP), adjustments of financing terms are possible (based on updated Debt Sustainability Analysis in the aftermath of crisis).
***Blended Finance Facility (BFF), Local Currency Facility (LCF), Risk Mitigation Facility (RMF), MIGA Guarantee Facility (MGF). Pricing for all PSW products determined by IFC and MIGA.

Financing Solutions for IDA-Eligible Countries

IDA Financial Solutions in Action

CASE STUDIES

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Financing Solutions for IDA-Eligible Countries

CASE STUDY BLENDED FINANCE

TANZANIA

Blending Scale-Up Windows to Maximize Savings

Tanzania secured the largest World Bank policy loan of$500 million in the country’s history to foster inclusive
and resilient growth.
OBJECTIVE

World Bank Support•

Analyzed Tanzania’s debt profile to understand its
management constraints, and objectives•

Provided financial scenarios for blending SML
and SUW Regular loan products to lower the costand meet the government’s fiscal and debt needs•

Structured the $500 million blended financing
package from two funding sources•

Customized regular SUW loan terms for a long
grace period (10 years) that pushed out the principal
repayments•

Advised the Government and World Bank project
teams throughout loan negotiation cycle for timely
deliveryMaximize the full range of concessional financing available from
IDA and minimize the cost of borrowing for Tanzania.
SOLUTION
The financing blended IDA’s concessional Shorter Maturity Loan
with the market-priced, regular IDA Scale-Up Window loan.
OUTCOMEThe blended package is expected to save Tanzania almost $1 ininterest cost for every $3 it borrows.

Read more here

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Financing Solutions for IDA-Eligible Countries

CASE STUDY SUSTAINABLE FINANCE

RWANDA

Structuring and Funding the Development Bank of Rwanda’s
Sustainability-Linked Bond

Development Bank of Rwanda (BRD) issued its
inaugural $30 million Sustainability-Linked Bond,supported by a credit enhancement through an IDA
Shorter Maturity Loan. This was the first SLB by any
national development bank globally.
OBJECTIVE
Develop new long-term funding sources for BRD to fund projects
supporting Rwanda’s sustainable development goals, at thelowest cost possible.
SOLUTION
BRD mobilized private capital by issuing the first-everSustainability-Linked Bond (SLB) in East Africa, using an
innovative credit enhancement mechanism structured andfunded by the World Bank.
OUTCOMEWorld Bank Support•

Structured innovative credit enhancement
maximizing concessionality, replicable across theregion•Provided technical assistance for defining andcalibrating the key performance indicators•

Supported the preparation of the SLB framework•

Built capacity for BRD to issue their first-ever bondin the capital markets•

Reviewed key transaction documents: investor
presentation, pricing supplement, collateralagreementAward Winning Bond Issuance

BRD obtained non-government financing at a 7% rate, half thecost of standard 14% issuances, thanks to credit enhancement
and collateral reinvestment yield.
Read more here

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Financing Solutions for IDA-Eligible Countries

CASE STUDY DISASTER RISK FINANCECARIBBEAN

Catastrophe Bond (Cat Bond) for the Caribbean
Catastrophe Risk Insurance Facility (CCRIF)

Dominica, Grenada, Haiti, St. Lucia, St. Vincent& Grenadines obtained hurricane and earthquake
protection through World-Bank-issued Cat bond for
CCRIF.
OBJECTIVE

World Bank Support•

Issued $30 million Cat Bond for CCRIF in
Insurance Linked Securities (ILS) market•

Streamlined issuance process in terms of timeand cost by using the World Bank’s Capital at Risk
program to issue the cat bond directly, eliminating
the need for a special purpose issuer•

Provided advisory and investor relations support
throughout the process•

Guided outreach and investor discussions,leveraging World Bank’s capital markets expertise

Provide insurance coverage against natural disasters for
CCRIF’s 16 member countries, including IDA-eligible countries.
SOLUTION
The World Bank issued 3-year Cat bond linked to hurricane andearthquake risk, keeping proceeds ready for disbursement.
OUTCOMECCRIF secured multi-year insurance access at fixed price,enhancing the stability of its risk transfer program.

Innovations under the World Bank’s new Crisis Response

Did you
Toolkit allow countries to fund the transaction costs for cat
know? bonds through a World Bank operation.

Read more here

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Financing Solutions for IDA-Eligible Countries

CASE STUDY FINANCIAL RISK MANAGEMENT

MALAWI

The World Bank’s First IPF DDO for an IDA Country

Malawi de-risked the importation of essential goods
through a $60 million IDA Investment Project Financing
with a Deferred Drawdown Option (IPF DDO). This is
the first IDA IPF DDO approved by the World Bank.

World Bank Support•

Implemented the $60 million IDA IPF DDO, fundedthrough Malawi’s Performance-Based Allocation. This
instrument allows recycling of released funds. When local
issuing banks settle their payments on matured letters ofcredit, earmarked positions are freed up in the contingent
financing to be reused to backstop new letters of credit. If
unused, the $60 million will be pulled back to Malawi’s IDA
envelope for other development projects.

yBuilt Malawi’s capacity on the financial terms andconditions of the financial instrument, including theapproval criteria, country limit, drawdown triggers, currency,
and financial risk.

OBJECTIVE
Malawi needed access to financing in the unlikely event that
local banks default on their payment obligations on their letters ofcredit commitments for the importation of strategic commodities.
SOLUTION
The IPF DDO provides contingent financing to the Governmentof Malawi to serve as a safety net for letters of credit issued by
local banks to import critical commodities. The IPF DDO ensuresthat the World Bank will assume the forex payment obligations of
the local issuing banks in the event of a default.

–

Drawdown trigger: Funds are released to acorrespondent bank when a local bank fails to pay its
obligations for a letter of credit issued for the importationof critical commodities.

–

Drawdown period and renewal: The drawdown
period for this operation is three years, and Malawi has
the option of renewing the IPF DDO for an additional
three-year period.

OUTCOME
Malawi secured the $60 million IPF DDO, which aims to revitalize
the trade finance market, especially the importation of strategiccommodities, such as fertilizers and essential pharmaceuticals
which are crucial for food security and public health.

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Financing Solutions for IDA-Eligible Countries

CASE STUDY ENCLAVE LOAN

COTE D’IVOIRE

Using Future Cashew Export Revenue to Mobilize
Additional Financial Resources Beyond IDA

Cote d’Ivoire secured a $200 million enclave loan withcredit enhancement features to support the Cashew
Value Chain Competitiveness Project. This allowed thecountry to have access to additional fi nancing (at IBRD
terms), over and above its IDA allocation.
OBJECTIVE
Structure a large volume, cost-effective and long-term,transparent financing scheme for the project without requiring
additional budget resources from the government.
SOLUTION
An enclave loan to Cote d’Ivoire’s Conseil du Coton et del’Anacarde: including credit enhancement features, where
future cash flows from the project are ringfenced to service loan
repayments.
OUTCOMEWorld Bank Support•

Clarified the financial viability of the project•

Explored financing options and performed
financial analysis•

Structured an appropriate financial scheme•

Explained the financial scheme and terms,
including the loan covenants, to the borrower, thegovernment, and other stakeholders•

Executed the transaction in collaboration with theBank’s Legal Finance team—setting up the escrowaccounts at a commercial bank, setting up security
interest in the account balance and inflows, andleading negotiations among the parties to put thetransaction into contractual agreements

The $200 million equivalent IBRD loan, a market-based productbut still more concessional than commercial rates, enabled thegovernment to support the cashew industry without crowding out
the IDA resources.
Read more here

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Financing Solutions for IDA-Eligible Countries

CASE STUDY COMMODITY RISK MANAGEMENT ADVISORYMALDIVES

Capacity Building on Commodity Hedging Strategy

The World Bank provided technical assistance oncommodity hedging to the Maldivian authorities to help
them reform their subsidy program.
OBJECTIVE
Build capacity on measuring fiscal exposure to commodity prices
and analyzing risk management strategies. As the Maldives ishighly dependent on fossil fuels for energy generation, it has
severe impact on fiscal accounts, hindering efforts to transition toclean energy.
SOLUTION
Provided technical assistance to measure the fiscal accounts’exposure to commodity prices and analyze market-based
strategies to manage exposure to commodity price risk.
OUTCOMEAs a result of the workshops with the Ministry of Finance, theState Trading Organization and the Monetary Authority. Maldivesplans to include commodity risk management in short-term fiscal
strategy.

World Bank Support•

Provided workshops for Ministry of Finance, State
Trading Organization, and Monetary Authority•

Measured exposure and established commodity
price risk tolerance levels•

Evaluated alternative risk management
instruments (both physical and financial)•

Modelled alternative price scenarios and potential
savings under adverse conditions•

Reviewed country cases involving price risk
management programs in peer countries•

Discussed necessary regulatory framework forrisk management program execution

23

Financing Solutions for IDA-Eligible Countries

List of IDA-Eligible Countries AS OF OCTOBER 2023*
N°

ECONOMYGNI PERCAPITA (US$)
AS OF FY24

LENDINGELIGIBILITY

1

Afghanistan

NA

IDA

High

2

Bangladesh

2820

IDA

Low

SUW

SUW-SML

3

Benin

1400

IDA

Moderate

SUW

SUW-SML

41

Mauritania

4

BhutanNA

IDA

Moderate

SUW

SUW-SML42

Micronesia Fed. Sts. Of

5Burkina Faso

840

IDA

RISK OF DEBT ELIGIBLE FOR IDA
DISTRESS AS SUW REGULAR
OF OCT. 2023
LOANS

Moderate

ELIGIBLE
SUW-SMLN°ECONOMYGNI PERCAPITA (US$)
AS OF FY24

LENDINGELIGIBILITY

39

Mali

850

IDA

Moderate

40

Marshall Islands

7920

IDA

High

2160

IDA

Moderate

4130

IDA

High
High

RISK OF DEBT ELIGIBLE FOR IDA
DISTRESS AS SUW REGULARLOANSOF OCT. 2023

ELIGIBLE
SUW-SML

SUW

SUW-SML

SUW

SUW-SML

SUW

SUW-SML

43

Mozambique

500

IDA

6

Burundi

240

IDA

High

44

Myanmar

1210

IDA

Low

SUW

SUW-SML

7

Cabo Verde

4140

Blend

Moderate

SUW

SUW-SML

45

Nepal

1340

IDA

Low

SUW

SUW-SML

8

Cambodia

1700

IDA

Low

SUW

SUW-SML

46

Nicaragua

2090

IDA

Moderate

SUW

9

Cameroon

1660

Blend

High

SUW-SML

47

Niger

610

IDA

Moderate

SUW

SUW-SML

10

Central African Republic

480

IDA

High

48

Nigeria

2140

Blend

MAC DSA

SUW**

SUW-SML**

MAC DSA

SUW**

SUW-SML**

SUW

SUW-SML

SUW

SUW-SML

SUW

SUW-SML49

Pakistan

1580

Blend

Papua New Guinea

2730

Blend

High

51

Rwanda930

IDA

Moderate

3630

IDA

High

2410

IDA

In debt distress

1640

IDA

Moderate

Chad

690

IDA

Comoros

1610

IDA

High

13 Congo, Democratic Republic of

590

IDA

Moderate

Congo, Republic of

2060

Blend

In debt distress

15

Cote d'Ivoire

2620

IDA

Moderate

53

Sao Tome and Principe

16

Djibouti

3180

IDA

High

54

Senegal17

Dominica

8460

Blend

High

55

Sierra Leone

510

IDA

High

18

EritreaNA

IDA...***

56

Solomon Islands

2220

IDA

Moderate

19

Ethiopia

1020

IDA

High

57

Somalia470

IDA

In debt distress

58

South Sudan

NA

IDA

High

59

Sri Lanka

3610

IDA

MAC DSA

SUW**

SUW-SML**60

St. Lucia

11160

Blend

Moderate

SUW

SUW-SML

SUW-SML

14

High

50

11
12

20

Fiji

5270

Blend

MAC DSA

21

Gambia The

810

IDA

High

22

Ghana

2350

IDA

In debt distress23

Grenada

9340

Blend

In debt distress24

Guinea1180

IDA

Moderate

25

Guinea-Bissau

820

IDA

High

26

Guyana15050

IDA

Moderate

27

Haiti

1610

IDA

High

28

Honduras

2740

IDA

Low

29

SUW

SUW-SML52 Samoa Independent State of

SUW

SUW**

SUW-SML

SUW-SML**
SUW-SML

61 St. Vincent and the Grenadines

9110

Blend

High

SUW

SUW-SML

62

Sudan

760

IDA

In debt distress

63

Syrian Arab Republic

NA

IDA

N.A.

SUW

SUW-SML

64

Tajikistan

1210

IDA

High

SUW-SML

65

Tanzania

1200

IDA

Moderate

SUW

SUW

SUW-SML

66

Timor-Leste

1970

Blend

Moderate

SUW

SUW-SML

67

990

IDA

Moderate

SUW

68

Tonga

NA

IDA

High

SUW-SML**69

Tuvalu

7210

IDA

High

Kenya

2170

Blend

30

Kiribati

3280

IDA

High

31

Kosovo5590

IDA

MAC DSA

High
SUW**
SUW

Togo

SUW-SML

SUW-SML

70

Uganda930

IDA

Moderate

SUW

SUW-SML

71

Uzbekistan

2190

Blend

Low

SUW

SUW-SML

SUW

SUW-SML

72

Vanuatu

3560

IDA

Moderate

SUW

SUW-SML

Moderate

SUW

SUW-SML73

Yemen Republic of

IDA

Moderate

Moderate

SUW

SUW-SML

74

Zambia1170

IDA

In debt distress75

Zimbabwe

1500

Blend

In debt distress

32

Kyrgyz Republic

1410

IDA

Moderate

33

Lao PDR

2360

IDA

In debt distress

34

Lesotho

1260

IDA

Moderate

35

Liberia

680

IDA

36

Madagascar

510

IDA

37

Malawi640

IDA

In debt distress38

Maldives

11030

IDA

High

NA

*For latest information visit https://ida.worldbank.org/en/financing, and download the most current file on IDA Country Allocations.
**Considered on a case-by-case basis.
***The latest DSA is not publicly available as of end-September 2023.

Miguel Navarro-Martin
Manager, Financial Products & Client Solutions
The World Bank Treasury
mnavarromartin@worldbank.org
Mahmut Rüstem ŞenManager, Corporate IDA & IBRD
The World Bank
msen@worldbank.org