International Development Association

Management’s Discussion & Analysis
andCondensed Quarterly Financial Statements
March 31, 2021
(Unaudited)I n t e r n a t i o n a l De v e l o p m e n t As s o c i a t i o n ( I D A )M a n a g e m e n t ’ s D i s c u s s i o n a n d An a l y s i sMarch 31, 2021
Contents
Section I: Executive Summary

Summary of Financial Results

4

Section II: Overview

Nineteenth Replenishment of Resources (IDA19)
Financial Business Model
Basis of Reporting

6
6
7

Section III: IDA’s Financial Resources IDA19 Funding
Allocation of IDA19 Resources8
8

Section IV: Financial Results

Summary of Financial Results

10

Section V: Risk Management

Risk GovernanceManagement of IDA’s Risks

16
16

Section VI: Governance

Senior Management Changes

23

List of Tables, Figures and Box

TablesFigures
Box

24
24
24

Management’s Discussion and Analysis

Section I: Executive Summary

This Management’s Discussion & Analysis (MD&A) discusses the results of the International Development
Association’s (IDA) financial performance for the nine-month period ended March 31, 2021 (FY21 YTD). This
document should be read in conjunction with IDA’s financial statements and MD&A issued for the fiscal year ended
June 30, 2020 (FY20). IDA undertakes no obligation to update any forward-looking statements. Certain
reclassifications of prior years’ information have been made to conform with the current year’s presentation. For
information relating to IDA’s development operations’ results and corporate performance, refer to the World Bank
Corporate Scorecard and Sustainability Review.

Box 1: Selected Financial Data
In millions of U.S. dollars, except ratios which are in percentages
As of and for the nine months
ended March 31,
2021
2020

As of and for the fiscal years ended June 30,
2020

2019

2018

2017

Lending Highlights (Section IV)
Loans, Grants and Guarantees
Net commitments a

20,725 $13,18330,365 $21,932 $24,010 $19,513Gross disbursements a$

15,191

12,143$

21,17917,54914,383

12,718Net disbursements a

10,306

7,635

15,112

12,221

9,290

8,154

173,357

Balance Sheet (Section IV)
Total assets

212,785 $

194,180

199,472 $

188,553 $

184,666 $Net investment portfolio b$

36,451

36,849$35,57132,44333,73529,673Net loans outstanding

171,916

153,903

160,961

151,921

145,656

138,351

Borrowing portfolio c

22,745

15,12019,653

10,149

7,318

3,660

Total equity

178,559

166,064

168,171

162,982

163,945

158,476

Income Statement (Section IV)
Interest revenue, net of borrowing
expenses
Transfers from affiliatedorganizations and others
Development grants
Net loss
Non-GAAP Measures:
Adjusted Net Income (Loss)(Section IV)$

1,537 $

1,409

331

$

1,843 $

1,702 $

1,647 $

1,521

252

252

258

203

599

(2,562)(729)(1,475)(7,694)(4,969)(2,577)

(122)

(441)

(1,114)(6,650)(5,231)(2,296)

309

368

724

225

(391)

(158)

36.1%

37.6%

35.8%

35.3%

37.4%

37.2%

Capital Adequacy (Section V)
Deployable Strategic Capital Ratioa. Commitments are net of full cancellations/terminations approved in the same fiscal year. Commitments and disbursements
exclude IFC-MIGA Private Sector Window (PSW) activities.
b. For composition of net investment portfolio, see Notes to Condensed Quarterly Financial Statements, Note C – Investments –Table C2.
c. Includes associated derivatives.

2

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section I: Executive Summary

Section I: Executive Summary
Owned by its 173 members, IDA, an entity rated triple-A by the major rating agencies, and one of the five institutionsof the World Bank Group (WBG1), has been providing financing and knowledge services to many of the world’s
developing countries for 60 years. Each organization is legally and financially independent from IDA, with separate
assets and liabilities, and IDA is not liable for their obligations.
With its many years of experience and its depth of knowledge in the international development arena, IDA plays a
key role in achieving the WBG goal of helping countries achieve better development outcomes. IDA contributes tothe WBG’s twin goals of ending extreme poverty and promoting shared prosperity by providing loans, grants, andguarantees to countries to help meet their development needs and by leveraging its experience and expertise to provide
technical assistance and policy advice. It also supports countries with disaster risk financing and insurance against
natural disasters and health-related crises and facilitates financing through trust fund partnerships.
IDA and its affiliated organizations seek to help countries achieve improvements in growth, job creation, poverty
reduction, governance, the environment, climate adaptation and resilience, human capital, infrastructure, and debt
transparency. To meet its development goals, the WBG has been increasing its focus on country programs in order toimprove growth and development outcomes. The Bank’s operational realignment, which came into effect on July 1,
2020, places country-driven development at the center of the delivery model, while strengthening thought leadershipon development issues of critical importance to sustainable growth and poverty alleviation. Support is being expanded
for countries at lower levels of income, and fragile and conflict-affected states. The realignment strengthens the focus
on Africa by creating two Vice Presidencies, one focused on Western and Central Africa and the other on Eastern andSouthern Africa. Certain reclassifications of prior years’ information have been made to conform with the current
year’s presentation.

1

The other WBG institutions are the International Bank for Reconstruction and Development (IBRD), the International FinanceCorporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment
Disputes (ICSID).

IDA Management’s Discussion and Analysis: March 31, 2021

3

Management’s Discussion and Analysis

Section I: Executive Summary

Summary of Financial Results
Net Loss and Adjusted Net Income

In millions of U.S. dollars

Net Loss: For FY21 YTD, IDA reported a net loss of $122 million,
compared to net loss of $441 million for FY20 YTD. The decreasein net loss was primarily driven by the increase in unrealized markto-market gains on the non-trading portfolios partially offset by anincrease in development grant expenses during the period. See
Section IV: Financial Results.

Adjusted Net Income (Loss)Net Income (Loss)

4,000
2,000
0

Adjusted Net Income: For FY21 YTD, IDA’s adjusted net income
was $309 million, lower by $59 million compared with the adjusted
net income of $368 million in FY20 YTD. The decrease wasprimarily due to lower investment revenue, partially offset by higher
loan interest revenue. See Section IV: Financial Results.

(2,000)Equity and Capital Adequacy

In billions of U.S. dollars(4,000)
FY17
YTD

FY18
YTD

FY19
YTD

FY20
YTD

FY21
YTD

Jun 19Jun 20Mar 21EquityAs of March 31, 2021, IDA’s reported equity was $178.6 billion, an
increase of $10.4 billion from June 30, 2020. See Section IV:
Financial Results.

200
150
100
50
0
Jun 17

The Deployable Strategic Capital (DSC) ratio, IDA’s main capital
adequacy measure, was 36.1% as of March 31, 2021, above the zero
percent policy minimum, and an increase of 0.3 percentage points
from 35.8% as of June 30, 2020. IDA’s capital continues to beadequate to support its operations. See Table 13.

Jun 18

Ratio in percentages
Deployable Strategic Capital Ratio
45%
30%
15%
Minimum ratio = 0%0%
Jun 17

4

IDA Management’s Discussion and Analysis: March 31, 2021

Jun 18Jun 19Jun 20Mar 21

Management’s Discussion and Analysis

Section I: Executive Summary

Lending Operations
IDA made $20.7 billion of net commitments in FY21 YTD, of which $12.9 billion were loan and guarantee
commitments. The remainder were grant commitments, which are recorded as an expense in IDA’s Statement of
Income once all conditions are met, which generally occurs at the time of disbursement.
IDA’s net loans outstanding increased by $10.9 billion, to $171.9 billion as of March 31, 2021, from $161.0 billion
as of June 30, 2020. See Section IV: Financial Results.
In billions of U.S. dollarsa

Net Commitments
Gross Disbursements
Net Disbursements
25
20
15
10
5
0

10

Net Grant Commitments
Grant Expense

200

8

160

6

120

4

80

2

40

0
FY17 FY18 FY19 FY20 FY21YTD YTD YTD YTD YTD

Net Loans Outstanding

FY17
YTD

FY18
YTD

FY19
YTD

FY20
YTD

FY21
YTD

0
Jun 17 Jun 18 Jun 19 Jun 20 Mar 21

a. Includes loans, grants, and guarantees.
In billions of U.S. dollars

Net Investment Portfolio
As of March 31, 2021, the net investment portfolio was $36.5 billion,
compared with $35.6 billion as of June 30, 2020. See Section IV: Financial
Results. The primary objective of IDA’s investment strategy is principal
protection. As of March 31, 2021, 58% of IDA’s investment portfolio washeld in instruments rated AA or above (See Table 15).

Net Investment Portfolio
75
60
45
30
15
0
Jun 17 Jun 18 Jun 19 Jun 20 Mar 21

In billions of U.S. dollars

Borrowing Portfolio
Market borrowings: As of March 31, 2021, the total market borrowings
portfolio outstanding was $15.0 billion, an increase of $3.0 billion from
June 30, 2020. See Section IV: Financial Results.
Concessional Partner Loans: As of March 31, 2021, total borrowings
from members - Concessional Partner Loans (CPLs) - were $7.7 billion,
an increase of $0.1 billion, compared with June 30, 2020 ($7.6 billion).
See Section IV: Financial Results.

Borrowing portfolio
75
60
45
30
15
0
Jun 17 Jun 18 Jun 19 Jun 20 Mar 21

IDA Management’s Discussion and Analysis: March 31, 2021

5

Management’s Discussion and Analysis

Section II: Overview

Section II: Overview
Generally, every three years, representatives of IDA’s members 2 meet to assess IDA’s financial capacity and the
medium-term demand for new IDA financing. Members decide on the policy framework, agree upon the amount offinancing to be made available for the replenishment period, and commit to additional contributions of equity that are
required to meet these goals. The meetings culminate in a replenishment agreement that determines the size, sources(both internal and external), and uses of funds for the replenishment period.

Nineteenth Replenishment of Resources (IDA19)In March 2020, IDA’s Nineteenth Replenishment of Resources (IDA19) was approved by the Board of Governors.
The IDA19 financing framework is an integrated package that will continue to leverage IDA’s strong equity base.
Members agreed that IDA would make $82.0 billion3 in new commitments over the replenishment period, backed by$27.4 billion in new member contributions, including compensation for the Multilateral Debt Relief Initiative (MDRI).
IDA19 supports the world’s poorest and most vulnerable countries to implement country-driven solutions that generate
growth, are people-centered, and strengthen resilience. IDA19 builds on IDA18 development themes, including
creating jobs, focusing on the poorest countries, including Fragile, Conflict and Violent (FCV) states, promoting low
carbon enabling environment and investments, gender, and governance. IDA19’s policy package incorporates four
additional crosscutting issues: debt (including transparency); digital technology and connectivity; investing in people;
and disability inclusion.
Since the onset of the COVID-19 crisis, IDA has significantly scaled up its financial support, serving clients andtargeting resources to those most in need. In recognition of the heightened financing needs of IDA countries and to
make additional resources available to them to respond to, and recover from the COVID-19 crisis, IDA members
agreed in April 2021 to launch the twentieth IDA replenishment (IDA20), which will commence in FY23. IDA19 will
be shortened to two years (FY21-FY22), and $12.5 billion of resources originally projected for use in FY23 will be
accelerated to financing in FY22. The IDA19 financing framework has been adjusted to make $71.0 billion of
resources available, of a total IDA19 commitment authority of $82.0 billion, all on standard IDA terms. The remaining$11.0 billion will be carried over to be utilized in the replenishment period of IDA20.

Financial Business Model
IDA has financed its operations over the years with its own equity, including regular additions to equity provided bymember countries as part of the replenishment process. In FY15, IDA introduced debt to its financial model withconcessional partner loans received from certain members. In FY18, IDA introduced a hybrid financing model by
including market debt into its business model. By prudently leveraging its equity and blending market debt withadditional equity contributions from members, IDA has increased its financial efficiency, and scaled up its financing
to support the escalating demand for its resources to deliver on the following priorities:• Retain IDA’s mandate to provide concessional financing on terms that respond to clients’ needs; and• Ensure long-term financial sustainability of IDA’s financial model through a prudent risk management framework.
Concessional lending, including grants, is primarily financed by IDA’s equity. Non-concessional lending will
primarily be financed by market debt. To the extent that market debt will be used to finance concessional lending, it
will be blended with member contributions (equity). See Figure 1.

IDA’s members are owners and hold voting rights in IDA. Members do not, however, hold shares in IDA and are therefore not referred
to as shareholders. Payments for subscriptions and contributions from members increase IDA’s paid-in equity and are financiallyequivalent to paid-in capital in multilateral development organizations that issue shares.
3
U.S. dollar amounts are based on an IDA19 reference rate of USD/SDR 1.38318. The U.S. dollar amounts are provided for reporting
purposes only, as IDA’s balance sheet is predominantly managed in Special Drawing Rights (SDR).
2

6

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section II: Overview

EquityConcessional Lending and Grants

Investments
Borrowings

Non – Concessional Lending

Reflows and Operating
Results

Figure 1: IDA's Financial Business Model

Basis of Reporting
IDA prepares its financial statements in conformity with accounting principles generally accepted in the United Statesof America (U.S. GAAP). IDA’s functional currencies are the SDR and its component currencies of U.S. dollar, euro,
Japanese yen, pound sterling and Chinese renminbi. For the convenience of its members and other users, IDA’s
financial statements are reported in U.S. dollars. Management uses net income as the basis for deriving adjusted net
income, as discussed in Section IV: Financial Results.
In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments—
Credit Losses (Topic 326). The ASU, along with its subsequent amendments, introduced a new credit loss
methodology - the Current Expected Credit Losses (CECL) methodology. This ASU also requires credit risk
measurement disclosures. IDA adopted the ASU as of July 1, 2020. See Notes to the Condensed Quarterly Financial
Statements, Note A – Summary of Significant Accounting and Related Policies.

Adjusted Net Income
Adjusted Net Income (ANI), a non-GAAP measure, reflects the economic results of IDA’s operations and is used by
IDA’s Management and the Board as a financial sustainability measure. ANI is defined as IDA’s net income, adjusted
to exclude certain items. After the effects of these adjustments, the resulting ANI generally reflects amounts which
are realized, not restricted for specific uses, and not directly funded by members. For a detailed discussion of theadjustments, see IDA’s MD&A for the fiscal year ended June 30, 2020, Section IV: Financial Results.

IDA Management’s Discussion and Analysis: March 31, 2021

7

Management’s Discussion and Analysis

Section III: IDA’s Financial Resources

Section III: IDA’s Financial Resources
IDA19 Funding
IDA’s financing resource envelope available for lending and grant commitments is based on the long-term outlook of
IDA’s financial sustainability. This takes into account the amount of member contributions and the concessionality ofthe proposed financing to borrowers, market conditions, and capital adequacy requirements. The IDA19 financing
framework has been adjusted to make $71.0 billion of resources available to IDA countries in IDA19, of a total IDA19
commitment authority envelope of $82.0 billion, and the remaining $11.0 billion will be carried over to IDA20.

Allocation of IDA19 Resources
IDA financing is provided in the form of loans, grants, and guarantees. Most of IDA resources are allocated to eligible
members through IDA Country Allocations that provide unearmarked support. IDA Country Allocations are
determined using the Performance Based Allocation (PBA) system, which takes into account the country’s
performance rating (CPR), population size and per capita income. The rest of IDA support is provided through five
IDA Windows dedicated to addressing specific development priorities, and an Arrears Clearance Set-Aside thatprovides exceptional support for countries to fully reengage with the World Bank. The allocation framework is agreed
for each replenishment cycle.
IDA responds to specific needs of its members through the following five IDA Windows:•

Concessional Windows▪ Regional Window▪ Window for Host Communities and Refugees (WHR)▪ Crisis Response Window (CRW)•

Non-concessional Window▪ Scale-up Window (SUW)•

Private Sector Window (PSW)

Eligibility and the percentage of allocation for grants for IDA-only countries is based on the country’s classification
and an assessment of the country’s risk of debt distress, where the higher the risk assessment, the greater the proportionof grant financing. Gap and Blend countries are only eligible for grant financing via the Window for Host Communities
and Refugees, if applicable.
Table 1: Cumulative Net Commitments under IDA19
In millions of U.S. dollars
Loans andGuarantees

As of March 31, 2021
Concessional financing
IDA Country Allocations
IDA Concessional Windows
Regional Window
Window for Host Communities and Refugees
Crisis Response Window
Arrears Clearance
Non-concessional financing
Total Net Commitments a$

11,010

$

789
415
735
12,949Grants

$

5,934

$

421
351
70
1,000
7,776

Total

$

16,944

$

1,210
351
485
1,000
735
20,725a. Commitments are net of full cancellations/terminations approved in the same fiscal year. Commitments exclude IFC-MIGA Private
Sector Window (PSW) activities.

The Private Sector Window was created under IDA18 to mobilize private sector investment in IDA-only countries
and IDA-eligible Fragile and Conflict-affected States. In IDA19, the PSW resource allocation has been set at $2.5
billion. During FY21 YTD, $384 million of the IDA19 resources, net of cancellations, was committed.

8

IDA Management’s Discussion and Analysis: March 31, 2021

Section III: IDA’s Financial Resources

Management’s Discussion and Analysis

As of March 31, 2021, $585 million has been utilized out of a total of $1.8 billion commitments in IDA18 and IDA19.
See Notes to the Condensed Quarterly Financial Statements for the period ended March 31, 2021, Note G –Transactions with Affiliated Organizations – Table G4.
Table 2: Utilization of PSW Commitments
In millions of U.S. dollars
As of March 31, 2021
Guarantees
Derivatives$

468

Face value of outstanding guarantees

84

Notional amountFunding of IFC's PSW- related equity investments

22

Amortized cost

Loans

11

Amortized cost

Total utilization of IDA PSW$

585

IDA Management’s Discussion and Analysis: March 31, 2021

9

Management’s Discussion and Analysis

Section IV: Financial Results

Section IV: Financial Results
Summary of Financial Results
IDA had a net loss of $122 million in FY21 YTD compared with net loss of $441 million in FY20 YTD (See Table3). The decrease in net loss was primarily driven by:•$2.0 billion increase in unrealized mark-to-market gains on non-trading portfolios primarily from the Capital
Value Protection (CVP) portfolio, due to the upward movement in USD interest rates;•$0.5 billion increase in release of provision for losses on loans and other exposures mainly due to an $831
million release of loan loss provision due to Sudan’s arrears clearance, partially offset by;•$1.8 billion increase in development grant expenses primarily due to disbursement of $1.3 billion of grants
to Sudan in support of the re-engagement and reform program after its arrears clearance.

Table 3: Condensed Statement of Income
In millions of U.S. dollars
For the nine months ended March 31,
Interest Revenue
Loans, net
Investments, net
Asset/Liability Management Derivatives, net
Borrowing expenses, net
Interest Revenue, net of borrowing expenses

2021
$

1,584
109
(13)
(143)

$

1,273
341
(16)
(189)

$

1,537

$

1,409

Provision for losses on loans and other exposures, releases
Other revenue (expenses), net (Table 12)
Net non-interest expenses (Table 11)
Transfers from affiliated organizations and others
Non-functional currency translation adjustment (losses) gains, net
Unrealized mark-to-market gains on investments-trading portfolio, net a
Unrealized mark-to-market gains (losses) on non-trading portfolios, net
Development grants
Net Loss

565
50(1,163)
331
(333)
104
1,349
(2,562)$Adjustments to reconcile net (loss) income to adjusted net income:Expenses relating to development financing activities directly funded bycontributions from members
Contributions from affiliated organizations and others
Non-functional currency translation adjustment losses (gains), net
Unrealized market-to-market (gains) losses on non-trading portfolios, net b
Pension, PEBP and PCRF adjustments
Externally Funded Outputs (EFO) revenue
Adjusted Net Income

2020

$

(122)

Negative
ImpactPositive
Impact30(8)(1,141)
252
239
171
(664)
(729)
$

(441)

1,747
(331)
333
(1,361)
41
2

538
(252)
(239)
664
102
(4)

309

368

a. Includes IDA’s share of returns from Post-Employment Benefit Plan (PEBP) and Post-Retirement Contribution Reserve Fund(PCRF) assets – $130 million of positive returns (FY20 YTD – $32 million of negative returns).
b. For FY21 YTD, excludes $12 million of loss from revenue-hedging forward currency contracts.

10

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section IV: Financial Results

Table 4: Condensed Balance Sheet
In millions of U.S. dollars
As ofAssetsDue from banks
Investments
Net loans outstanding a
Derivative assets, net
Other assets
Total assets
Liabilities
Borrowings
Derivative liabilities, net
Other liabilities
EquityTotal liabilities and equity

March 31, 2021
$

$

$

$

June 30, 2020

492
36,302
171,916511
3,564
212,785$

22,650315
11,261
178,559
212,785$$$

Decrease

Increase

(182)

674
34,670160,961
136
3,031
199,472

1,632
10,955375
533
13,3132,884

19,766590
10,945
168,171
199,472(275)
316
10,38813,313a. The fair value of IDA loans was $153,926 million as of March 31, 2021 ($149,597 million – June 30, 2020).

EquitySee Table 5 below for the change in IDA’s equity during FY21 YTD.
Table 5: Changes in Equity
In millions of U.S. dollars
Equity as of June 30, 2020
Activity during the year:
Subscriptions and contributions paid-in
Nonnegotiable, noninterest-bearing demand obligations
Change in Accumulated deficit
Change in Accumulated other comprehensive income (loss)
Change in Deferred amounts to maintain value of currency holdings
Total activity
Equity as of March 31, 2021$

168,171$$

8,131(1,348)
(924)
4,528
1
10,388
178,559

Total Assets
As of March 31, 2021, total assets were $212.8 billion, an increase of $13.3 billion from June 30, 2020 ($199.5 billion).
The increase was primarily driven by the increase in net loans outstanding, as discussed below.

Results from Lending Activities
Loan Portfolio and Grant Activity
As of March 31, 2021, the net loans outstanding was $171.9 billion ($161.0 billion - June 30, 2020). IDA’s loans arecarried at amortized cost. As of March 31, 2021, 91% of IDA’s total loans outstanding were denominated in SDR. For
the regional presentation of total loans outstanding, see Notes to the Condensed Quarterly Financial Statements, Note
D – Loans and Other Exposures – Table D6.

IDA Management’s Discussion and Analysis: March 31, 2021

11

Management’s Discussion and Analysis

Section IV: Financial Results

Table 6: Net Loans Outstanding activity

Figure 2: Net Loans Outstanding

In millions of U.S. dollars

In billions of U.S. dollars

Net Loans outstanding as of June 30, 2020
Activity during the period:
Gross loan disbursements
Loan repayments
Change in Accumulated provision for loan losses a
Translation adjustments
Other b
Total activity
Net Loans outstanding as of March 31, 2021$

160,961$$

10,326(4,885)
731
4,796
(13)
10,955
171,916

a. See Notes to the Condensed Quarterly Financial Statements, Note D– Loans and Other Exposures.
b. Includes deferred loan origination costs of $6 million, and Heavily
Indebted Poor Countries (HIPC) Debt relief provided of $7 million.

200
152

161

172

150
100
50
0
Jun 19Jun 20Mar 21

During FY21 YTD, net loan commitments were 43% higher, compared with the same period in FY20, mainly driven
by the higher level of Program-for Results (PforR) commitments and Investment Project Financing (IPF). A significant
portion of the FY21 YTD commitments supported COVID-19 related efforts, including $0.9 billion of financing for
vaccines as of March 31, 2021.
Table 7: Net Commitments of Loans and Guarantees by Region
In millions of U.S. dollars
For the nine months ended March 31,

2021

Eastern and Southern Africa
Western and Central Africa
East Asia and Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
South Asia
Total

$

$

3,005
4,848
441
384
377
20
3,874
12,949of which Guarantees$-% of total

2020

23 %
38
3
3
3
*
30
100 %

$

$

2,350
4,100
635
820
208
10
938
9,061

$

25

$

2,106
1,047
189
248
66
5
461
4,122

% of total
26 %
45
7
9
2
*
11
100 %

Variance
$

$

655
748
(194)
(436)
169
10
2,936
3,888

$

(25)

* Indicates percentage less than 0.5%.
Table 8: Net Commitments of Grants by Region
In millions of U.S. dollars
For the nine months ended March 31,
Eastern and Southern Africa
Western and Central Africa
East Asia and Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
South Asia
Total

2021
$

$

4,403
1,911
72
227
147
329
687
7,776

% of total
57 %
24
1
3
2
4
9
100 %

2020

$

% of total
51 %
25
5
6
2
*
11
100 %

Variance
$

$

2,297
864
(117)
(21)
81
324
226
3,654

* Indicates percentage less than 0.5%.

IDA’s loans generally disburse within five to ten years for IPF and one to three years for Development Policy
Financing (DPF). Therefore, each year’s disbursements also include amounts relating to commitments made in earlier
years (See Table 9).
During FY21 YTD, gross disbursements were higher by 25% compared with the same period in FY20. The increase
was mainly driven by higher IPF and DPF disbursements.

12

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section IV: Financial Results

Table 9: Gross Disbursements of Loans and Grants by Region
In millions of U.S. dollars
For the nine months ended March 31,
Eastern and Southern Africa
Western and Central Africa
East Asia and Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
South Asia
Others b
Total

$

$

Loans

2021
Grants a

Total

Loans

2020
Grants a

Total

2,700
2,763
904
621
235
49
3,048
6
10,326

2,628
1,310
94
122
82
190
445
4,871

5,328
4,073
998
743
317
239
3,493
6
15,197$ 3,014
2,862
940
216
181
78
1,944
5
$ 9,240

1,380
920
72
61
95
44
336
2,908

4,394
3,782
1,012
277
276
122
2,280
5
12,148

Variance
$

$

934
291
(14)
466
41
117
1,213
1
3,049

a. Excludes Project Preparation Advances (PPA).
b. Represents loans under PSW.

As of March 31, 2021, 61% of IDA’s loans were on regular terms (75bps SDR equivalent service charge), see Table
10. For a summary of financial terms for IDA’s lending products, effective July 1, 2020, refer to IDA’s MD&A for
the fiscal year ended June 30, 2020, Section V: Development Activities, Products and Programs.
For the nine months ended March 31, 2021, the interest revenue from loans included $1,204 million of service charges.
The increase in IDA’s revenue from loans was primarily due to $244 million of service charges recorded as Sudan
paid all its overdue principal and charges due to IDA, and the higher volume of loans outstanding. For more details,
see Section V: Risk Management.
Table 10: Revenue and Balances by Product Category
In millions of U.S. dollars

Category
Loans
Concessional
Regular
Blend
Hard b
Non-concessional c
Others d
Total

Balance as of March 31,
2021
2020

$

$

107,454
62,186
1,396
4,563
11
175,610$

99,17955,499
1,321
2,433
5
$ 158,437

Interest revenue on loans a
For the nine months ended March 31,
2021
2020

$

$

849
638
37
61
*
1,585

$

$

640
547
36
50
*
1,273

a. Excludes interest rate swap expenses related to loan hedges - $1 million in FY21 YTD (less than $1 million - FY20 YTD).
b. Prior to July 1, 2017, IDA offered Hard-Term loans to Blend Countries (excluding Small Island Economies). Hard-term loans are nolonger offered.
c. In addition, $14 million of commitment charges were earned in FY21 YTD on undisbursed balances of non-concessional loans ($11
million in FY20 YTD).
d. Represents loans under the PSW.
* Indicates amount less than $0.5 million.

Results from Investing Activities
Investment Portfolio
IDA’s net investment portfolio increased to $36.5 billion as of March 31, 2021, from $35.6 billion as of June 30, 2020.
The increase was primarily due to cash received from member contributions and proceeds from net new debt issuances,offset by net loan and grant disbursements.
Net Investment Revenue
During the nine months ended March 31, 2021, IDA’s net investment revenue was $109 million, a decrease of $232
million compared with the same period in FY20. The decrease in interest revenue was mainly driven by the lower
interest rate environment in the current period.

IDA Management’s Discussion and Analysis: March 31, 2021

13

Management’s Discussion and Analysis

Section IV: Financial Results

Figure 3: Net Investment Portfolio

Figure 4: Net Investment Revenue

In billions of U.S. dollars

In millions of U.S. dollars

40

35.6

36.5

400

32.4
320

30

240
20

160
80

10

0

0
Jun 19Jun 20Mar 21

FY17
YTD

FY18
YTD

FY19
YTD

FY20
YTD

FY21
YTD

Results from Borrowing Activities (excluding associated derivatives)
Market borrowings outstanding were $14.9 billion as of March 31, 2021, an increase of $2.8 billion compared to June30, 2020 ($12.1 billion). The increase was driven mainly by net new issuances of Medium and Long-term instruments
during the period. See Notes to the Condensed Quarterly Financial Statements, Note E – Borrowings.
The Concessional partner loans are carried at amortized cost. As of March 31, 2021, total borrowings outstanding
from members were $7.7 billion ($7.6 billion - June 30, 2020). As part of IDA19, two members have agreed to provide
IDA with concessional partner loans totaling $1.1 billion. As of March 31, 2021, IDA has not signed any concessional
partner loan agreement under IDA19.

Transfers from Affiliated Organizations
Since 1964, IBRD has made transfers to IDA out of its net income, upon approval by the Board of Governors. Undera formula-based approach for IBRD's income support to IDA, the amount of income transfer recommended for IDA
is a function of IBRD's financial results. On January 25, 2021, IBRD’s Board of Governors approved a transfer of$331 million to IDA which was received by IDA on February 1, 2021.

Net Non-Interest Expenses
As shown in Table 11, IDA’s net non-interest expenses primarily comprised of administrative expenses, net ofrevenue from externally-funded activities. IBRD and IDA's administrative budget is a single resource envelope thatfunds the combined work programs of IBRD and IDA. The allocation of administrative expenses between IBRD and
IDA is based on an agreed cost and revenue sharing methodology, approved by their Boards, which is primarily driven
by the relative level of activities relating to lending, knowledge services, and other services between the two
institutions. The administrative expenses shown in the table below include costs related to IDA-executed trust funds
and other externally funded activities.
See Table 11 for a comparison of the main types of administrative expenses and revenue from externally funded
activities in FY21 YTD and FY20 YTD.
IDA’s net non-interest expenses were $1,163 million in FY21 YTD, compared to $1,141 million in FY20 YTD. The
key drivers during the period were:• Increase in pension costs driven by a decrease in the discount rate for pension liabilities resulting in higher service
cost and higher amortization of unrecognized actuarial losses;• Decrease in revenue from externally funded activities, partially offset by;• Decrease in travel costs due to COVID-19, and;• Decrease in the share of costs allocated to IDA.

14

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section IV: Financial Results

Table 11: Net Non-Interest Expenses
In millions of U.S. dollars
For the nine months ended March 31,
Administrative expenses:
Staff costs
TravelConsultant and contractual services
Pension and other post-retirement benefits
Communications and technology
Premises and equipment
Other expenses
Total administrative expenses

2021
$

$

828
9
313
374
48
98
30
1,700

Contributions to special programs
Revenue from externally funded activities:
Reimbursable revenue - IDA executed trust funds
Other revenue
Total revenue from externally funded activities
Total Net Non-Interest Expenses (Table 3)

$
$

$

$

2020

Variance

854
133
329
274
44
112
26
1,772

$

$

(26)
(124)
(16)
100
4
(14)
4
(72)

20

21

(1)

(371)
(186)
(557)
1,163

(426)
(226)
(652)
1,141

55
40
95
22

$
$

$
$

During FY21 YTD, IDA’s net other revenue increased by $58 million. The main driver was the PPA grant activity,
including cancellations and refinancing of PPA grants previously approved.
Table 12: Other Revenue (Expenses), net
In millions of U.S. dollars
For the nine months ended March 31,

2021

Other (primarily PPA grants)
Guarantee fees
Commitment charges
Other Revenue (Expenses) net (Table 3)

$

$

24
12
14
50

$

$

2020

Variance

(30)
11
11
(8)

$

$

54
1
3
58

Unrealized mark-to-market gains (losses) on non-trading portfolios, net
During the nine months ended March 31, 2021, the non-trading portfolios had $1,349 million of net unrealized markto-market gains ($664 million net unrealized mark-to-market losses for same period in FY20). The increase is mainly
driven by mark-to-market gains from the derivatives held for the Capital Value Protection Program (CVP) due to theincrease in USD interest rates.

Non-functional currency translation adjustment gains (losses), net
These represent unrealized exchange rate gains/losses resulting from the translation of loans, borrowings, and all otherassets and liabilities held on IDA’s Balance Sheet, that are denominated in currencies other than the SDR and its
component currencies. During the nine months ended March 31, 2021, translation adjustment losses on non-functional
currencies were $333 million as the majority of the non-functional currencies appreciated against the U.S. dollar,
IDA’s reporting currency. In comparison, in FY20 YTD, the translation adjustment gains were $239 million due tothe depreciation of the majority of these non-functional currencies against the U.S. dollar.

IDA Management’s Discussion and Analysis: March 31, 2021

15

Management’s Discussion and Analysis

Section V: Risk Management

Section V: Risk Management
Risk Governance
IDA’s risk management processes and practices evolve to reflect changes in activities in response to market, credit,
product, operational, and other developments. The Board, particularly Audit Committee members, periodicallyreviews trends in IDA’s risk profiles and performance, and any major developments in risk management policies andcontrols.
Management believes that effective risk management is critical for IDA’s overall operations. Accordingly, the risk
management governance structure is designed to manage the principal risks IDA assumes in its activities, and supports
Management in its oversight function, particularly in coordinating different aspects of risk management and inconnection with risks that are common across functional areas.
IDA’s financial and operational risk governance structure is built on a layered approach where:
i. Business units are responsible for directly managing risks in their respective functional areas,
ii. The Vice President and WBG Chief Risk Officer (CRO) provides direction, challenge, and oversight overfinancial and operational risk activities, andiii. Internal Audit provides independent oversight.
IDA’s risk management process comprises risk identification, assessment, response, and risk monitoring andreporting. IDA has policies and procedures under which risk owners and corporate functions are responsible for
identifying, assessing, responding to, monitoring, and reporting risks.

Risk Oversight and Coverage
The CRO oversees both financial and operational risks. These risks include (i) country credit risks in the core sovereign
lending business, (ii) market and counterparty risks including liquidity risk, and (iii) operational risks relating topeople, processes, and systems. In addition, the CRO works closely with IBRD, IFC, and MIGA’s Management toreview, measure, aggregate, and report on risks and share best practices across the WBG. The CRO also helps enhancecooperation between the entities and facilitates knowledge sharing in the risk management function.
The risk of IDA’s operations not meeting the expected development outcomes (development outcome risks) in IDA’s
lending activities is monitored at the corporate level by Operations Policy and Country Services (OPCS). Where fraudand corruption risks may impact IDA-financed projects, OPCS, the Regions and Practice Groups, and the Integrity
Vice Presidency jointly address such issues.

Management of IDA’s Risks
IDA assumes financial risks in order to achieve its development and strategic objectives. IDA’s financial risk
management framework is designed to enable and support the institution in achieving its goals in a financiallysustainable manner. IDA manages credit, market, and operational risks for its financial activities, which includelending, borrowing, and investing. The primary financial risk to IDA is the country credit risk inherent in its loan andguarantee portfolio. IDA is also exposed to risks in its liquid asset and derivative portfolios, where the major risks areinterest rate, exchange rate, commercial counterparty, and liquidity risks. IDA’s operational risk management
framework is based on a structured and uniform approach to identify, assess, and monitor key operational risks acrossbusiness units.

Coronavirus Disease 2019 (COVID-19) Outbreak
The outbreak of COVID-19 has resulted in governments worldwide enacting emergency measures to combat the
spread of the virus. These measures, which include the implementation of travel bans, quarantine periods and social
distancing, have caused material disruption to businesses globally, resulting in an economic slowdown. Governments
and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic
conditions.
In light of COVID-19, IDA faces additional credit, market, and operational risks for its activities. IDA continues tomonitor the developments and to manage the risks associated with all its portfolios.

16

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section V: Risk Management

As of March 31, 2021, IDA had sufficient resources to meet its liquidity requirements and continues to have access tocapital market resources, despite market volatility. IDA continues to maintain a robust liquidity position and flexibility
to access the necessary liquidity resources. Management remains vigilant in assessing funding needs in the medium
and longer-term to manage the effect of possible severe market movements.
As of the reporting date, country credit risk and counterparty credit risk remain in line with the existing governanceframework and established credit limits. The loan loss provisions reflect IDA’s current assessment of country credit
risk. The fair values of related financial instruments reflect counterparty credit risk in IDA’s portfolios. Developmentsin the market continue to be closely monitored and managed.
Home-based work continues in most WB offices throughout the world, with certain exceptions, in line with IDA’s
Business Continuity Procedures. In addition, IDA has adopted other prudent measures to ensure the health and safetyof its employees, including imposing travel restrictions and holding public events in virtual format.
While the duration of the COVID-19 pandemic and its effects remain difficult to predict at this time, IDA has
continued to respond to demand and operate its core business functions effectively by utilizing technology for remote
work, and by leveraging its extensive local presence in client countries around the world.
Management has an office reopening framework that prioritizes staff health and safety while taking into consideration
risks including business continuity. The office reopening framework provides for the incremental return to office andon-site business activities in stages or “tiers,” allowing for enough time in between tiers to assess risk and preparedness
indicators. IDA continues to monitor risks associated with COVID-19 and prepare plans to respond in case thesituation deteriorates.

Capital Adequacy
IDA uses a solvency-based capital adequacy model, which mandates that IDA holds capital for credit risk, market risk
and operational risk covering all activities and assets on its books. The main measure of capital adequacy is Deployable
Strategic Capital, a non-GAAP measure, which is the capital available to support future commitments, over and above
the current portfolio. IDA is required, by the Board, to keep the DSC at levels greater than or equal to zero percent.
The DSC is calculated as the amount by which Total Resources Available (TRA) exceed Total Resources Required(TRR), plus a Conservation Buffer (CB). The TRA consists of IDA’s existing equity plus accumulated provision forloan losses. The TRR is the minimum capital required to cover expected and unexpected losses, (under a stressed but
still plausible downside scenario), in connection with all of IDA’s currently existing operations and assets. Within the
TRR there is also a capital allowance to reflect losses that result from valuing IDA’s concessional loan portfolio inpresent value terms using market interest rates. This allowance is calculated using a stressed interest rate to accountfor a potential future rise in market interest rates. The CB is an extra buffer in the amount of 10 percent of TRA.
As of March 31, 2021, the DSC was 36.1%, higher by 0.3 percentage points compared with June 30, 2020 (35.8%).
The increase in the ratio was mainly due to the increase in TRA exceeding the increase in the TRR. The increase in
TRA was primarily due to the increase in equity from subscriptions and contributions paid in. See Table 13.
In addition to the DSC framework, IDA has policies in place to ensure alignment of its lending and borrowing
activities. Included in these policies are asset coverage requirements, where Management monitors asset and liquidity
levels to ensure IDA’s ability to satisfy all its borrowing and commitment obligations. See IDA’s MD&A for the fiscal
year ended June 30, 2020, Section IX: Risk Management.
Table 13: Deployable Strategic Capital Ratio
In billions of U.S. dollars except ratios in percentage
As ofTotal Resources Available (TRA)
Total Resources Required (TRR)
Conservation Buffer (CB)
Deployable Strategic Capital (DSC = TRA-TRR-CB)
Deployable Strategic Capital as a percentage of TRA$$

March 31, 2021
183.4
98.9
18.3
66.2
36.1%

$

$

June 30, 2020
172.6
93.5
17.3
61.8
35.8%

IDA Management’s Discussion and Analysis: March 31, 2021

17

Management’s Discussion and Analysis

Section V: Risk Management

Asset/Liability Management
Capital Value Protection Program
In FY20, as part of IDA’s Asset/Liability Management (ALM) policies, IDA executed pay fixed, receive floating
forward-starting swaps with a notional of $15.0 billion under a Board-approved Capital Value Protection Program.
The objective of the program is to partially reduce the sensitivity of IDA’s capital adequacy model to changes in longterm interest rates and allow for more resources to be available for lending under the capital adequacy framework. For
more details, see Notes to the Condensed Quarterly Financial Statements, Note F: Derivative Instruments.

Management of Credit and Market Risks
Credit Risk
IDA faces two types of credit risk: country credit risk and counterparty credit risk. Country credit risk is the risk ofloss due to a country not meeting its contractual obligations, and counterparty credit risk is the risk of loss attributable
to a counterparty not honoring its contractual obligations. IDA is exposed to commercial as well as noncommercial
counterparty credit risk.
Country Credit Risk
IDA’s lending management framework encompasses the long-standing Performance Based Allocation (PBA)
mechanism and allocation framework agreed at each replenishment, complemented by additional considerations
required when accessing debt markets to ensure adherence to risk management (capital adequacy) requirements.
IDA regularly assesses the country credit risk of all its borrowers. Based on these risk ratings, to manage IDA’s overall
portfolio risk, the allocation outcomes of the PBA and other mechanisms are reviewed to ensure that they arecompatible with the Deployable Strategic Capital Framework and Single Borrower Limit (SBL).
For FY21, the SBL has been set at $42.0 billion (25% of $168.2 billion of equity as of June 30, 2020). Currently, themaximum country exposure levels compatible with IDA’s overall capital adequacy target are lower than the SBL for
all IDA-borrowing countries. As a consequence, the SBL is not currently a constraining factor.
Probable Losses, Overdue Payments and Non-Performing Loans
When a borrower fails to make payments on any principal, interest, or other charges due to IDA, IDA may suspend
disbursements immediately on all loans and grants to that borrower. IDA’s current practice is to exercise this option
using a graduated approach. These practices also apply to member countries eligible to borrow from both IDA and
IBRD, and whose payments on IBRD loans may become overdue. It is IDA’s practice not to reschedule interest or
principal payments on its loans or participate in debt rescheduling agreements with respect to its loans. As of March
31, 2021, none of the borrowing countries in IDA’s accrual portfolio had overdue payments beyond 90 days.
As an exception to the practices set forth for treatment of overdue payments, IDA has provided financing to countries
with overdue payments, in very specific situations. For further details, refer IDA’s MD&A for the fiscal year ended
June 30, 2020, Section IX: Risk Management.
In FY21, Sudan had access to $410 million of Pre-Arrears Clearance Grants (PACG) in support of the country’s
reform momentum towards HIPC decision point. Of this amount, $100 million had been disbursed and expensed in
the Condensed Statement of Income.
On March 25, 2021, Sudan paid all of the overdue principal and charges due to IDA of $849 million and $244 million,
respectively. The outstanding loans remaining to Sudan were restored to accrual status on that date, in accordancewith IDA’s policy. For more details, see Notes to the Condensed Quarterly Financial Statements, Note D – Loans andOther Exposures.
As of March 31, 2021, approximately 0.5% of IDA’s loans were in nonaccrual status, a decrease of 0.8 percentage
points, compared with June 30, 2020. See Notes to the Condensed Quarterly Financial Statements, Note D – Loans
and Other Exposures.
Accumulated Provision for Losses on Loans and Other Exposures
Beginning July 1, 2020, IDA records a provision to reflect the expected losses inherent in its loan and other exposures.
Prior to July 1, 2020, the provision was determined based on an incurred loss model. On July 1, 2020, IDA recorded
a transition adjustment of $802 million, increasing the beginning balance of accumulated deficit. This adjustment

18

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section V: Risk Management

represented the difference between the previous method and CECL (See Notes to Condensed Quarterly Financial
Statements, Note A – Summary of Significant Accounting and Related Policies). For the first nine months of FY21,
IDA recorded a provision for losses on loans and other exposures of $292 million, primarily reflecting the increase in
exposures during the period. For more details, see Notes to the Condensed Quarterly Financial Statements, Note D –Loans and Other Exposures – Table D3.
As of March 31, 2021, IDA’s accumulated provision for losses on loans and other exposures was $4.8 billion, which
represents a provisioning rate of 2% of the underlying exposures ($4.5 billion as of June 30, 2020, 2.7% of theunderlying exposures).
Table 14 provides details of the top five borrowers with the largest loan outstanding balances as of March 31, 2021.
These borrowers represented 45% of loans outstanding as of that date.
Table 14: Top Five Borrowers with the Largest Outstanding Balance
In millions of U.S. dollars, or as otherwise indicatedCountry
Total
India
Eligibility
IBRD
Loans outstanding$ 95,860

9%

8%

6%

55%

Weighted Average Maturity(Years)

11.6

5.4

13.2

10.5

6.9

13.4

13.4

107,454
62,186
1,396
4,563
11

3,676
16,137419
1,886-

16,413
964
60
-

725
13,652
453
326
-

7,270
6,328
262
172
-

5,370
5,403
115
119
-

74,00019,702
147
2,000
11

7,809

$ 39,579

5,325$

14,032

11,007

10%

$

$

$

12%

8,052

15,156

Others100%$$

Nigeria
Blend% of Total Loans outstanding

1,212

17,437

Vietnam
IBRD

22,118

Undisbursed balance$
65,384 $a. Represents loans under the PSW.

$

PakistanBlend

175,610 $Loans outstanding by terms
Concessional
Regular
Blend
Hard
Non-concessional
Others a$

Bangladesh
IDA-only

3,407$

Commercial Counterparty Credit Risk Exposure
Commercial counterparty credit risk is the risk that counterparties fail to meet their payment obligations under theterms of the contract or other financial instruments. Effective management of counterparty credit risk is vital to thesuccess of IDA’s funding, investment, and asset/ liability management activities. The monitoring and management ofthese risks is continuous as the market environment evolves.
As a result of IDA’s use of mark-to-market collateral arrangements for swap transactions, its residual commercial
counterparty credit risk exposure is concentrated in the investment portfolio, in instruments issued by sovereign
governments and non-sovereign holdings (including Agencies, Asset-backed securities, Corporates, and Time
Deposits) (See Table 15).
The credit quality of IDA’s investment portfolio remains in the upper end of the credit spectrum with 58% of theportfolio rated AA or above as of March 31, 2021, reflecting IDA’s continued preference for highly-rated securities
and counterparties across all categories of financial instruments.
Total commercial counterparty credit exposure, net of collateral held, was $36.6 billion as of March 31, 2021. For thecontractual value, notional amounts and related credit risk exposure amounts by instrument, see Notes to theCondensed Quarterly Financial Statements, Note F: Derivative Instruments.

IDA Management’s Discussion and Analysis: March 31, 2021

19

Management’s Discussion and Analysis

Section V: Risk Management

Table 15: Commercial Credit Exposure, Net of Collateral Held, by Counterparty Rating
In millions of U.S. dollars, except rates in percentages

Counterparty Rating

a

AAA
AA
A
BBB or below
Total

Counterparty Rating

Sovereigns
$

$

a

AAA
AA
A
BBB or below
Total

6,849
2,283
10,626
19,758$$

Sovereigns
$

$

2,814
2,221
11,886
16,921$$

As of March 31, 2021
NonNet Swap
Sovereigns
Exposure
5,097 $
6,549
352
4,720
163
16,366 $515

As of June 30, 2020
NonNet Swap
Sovereigns
Exposure
6,617 $
6,997
106
3,832
46
*
17,446 $
152

$

$

$

$

Total Exposure% of Total

11,946
9,184
15,50936,639

33
25
42
100

Total Exposure% of Total

9,431
9,324
15,764*34,519

27
27
46
*
100

a. Average rating is calculated using available ratings for the three major rating agencies; however, if ratings are not available fromeach of the three rating agencies, IDA uses the average of the ratings available from any of such rating agencies or a single rating to
the extent that an instrument or issuer (as applicable) is rated by only one rating agency.
* Indicates amount less than $0.5 million or percentage less than 0.5%.

Credit and Debit Valuation Adjustments
Most outstanding derivative positions are transacted over-the-counter, and therefore valued using internally developed
valuation models. For commercial and non-commercial counterparties where IDA has a net exposure (net receivable
position), IDA calculates a Credit Valuation Adjustment (CVA) to reflect credit risk. For net derivative positions withcommercial and non-commercial counterparties where IDA is in a net payable position, IDA calculates a Debit
Valuation Adjustment (DVA) to reflect its own credit risk. As of March 31, 2021, IDA’s Condensed Balance Sheet
included a CVA of $14 million and a DVA of $3 million on outstanding derivatives.
Market Risk
IDA is exposed to changes in interest and exchange rates. The introduction of market debt financing into IDA’s
business model from IDA18 presents additional exposures.
IDA uses derivatives to manage its exposure to various market risks. These are used to align the interest and currencycomposition of its assets (loan and investment trading portfolios) with that of its liabilities (borrowing portfolio) andequity. Loan and investment portfolios are largely maintained in SDR and its component currencies.
Interest Rate Risk
IDA is exposed to interest rate risk due to mismatches between its assets (loan and investment portfolios) and its
liabilities (borrowing portfolio) both in terms of maturity and instrument type. Given IDA’s lengthy disbursement
profile, the duration of IDA’s loans is relatively long. This long duration, combined with volatility in market interest
rates, would result in significant year-on-year variability in the fair value of equity. However, since the loan portfolio
is not reported at fair value under U.S. GAAP, the impact of this variability on IDA’s Balance Sheet is not fully
evident.
Under its integrated financing model, IDA employs the following strategies to manage interest rate risk:• The capital adequacy policies factor in the sensitivity to interest rates.
• Matching interest rates between assets and related funding to minimize open interest rate positions.
• The funding risk related to the mismatch between the maturity profile of the debt funding and the related assets ismonitored through duration measurements and adjustments to capital requirements to cover this risk.

20

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section V: Risk Management

Alternative Reference Rate
In July 2017, the Financial Conduct Authority (FCA), the regulator of the London Interbank Offered Rate (LIBOR),
announced that it would no longer compel panel banks to submit rates required to calculate LIBOR after December
31, 2021. Therefore, market participants, including IDA and its borrowers, need to move to alternative reference rates
because the availability of LIBOR after this date is not a certainty.
On March 5, 2021, the FCA confirmed that all LIBOR settings will either cease to be provided by any administrator
or no longer be representative, as follows:•

All sterling, euro, Swiss franc and Japanese yen LIBOR settings, and the 1-week and 2-month USD LIBOR
settings, will cease immediately following publication on December 31, 2021.

•

All remaining USD LIBOR settings, including the 6-month USD LIBOR used as the reference rate for IDA
loans, will cease immediately following its publication on June 30, 2023.

The regulators stated that the delay in the publication of the USD LIBOR rates beyond December 31, 2021 is aconcession to allow market participants to transition existing contracts, but that no new LIBOR contracts should beentered into after December 31, 2021.
Although, the transition from LIBOR is faced with numerous challenges, the transition decision is aimed at increasingtransparency in the financial markets by better aligning the alternative reference rates with actual market transactions.
IDA previously completed an initial impact assessment of its exposure, both quantitatively and qualitatively, to
LIBOR and developed an implementation roadmap for the LIBOR transition. Although most of IDA’s loans are on
fixed rate concessional terms, for IDA’s LIBOR based non-concessional and hard-term loans, IDA’s Executive
Directors have endorsed an omnibus amendment process with borrowers for loan agreements, where relevant, toaddress the replacement of LIBOR, allowing IDA to maintain the principles of fairness and equivalence for any
replacement reference rate. The contract amendments will enable similar treatment to all loans by bringing the fallback
provisions related to changes in the reference rate in the General Conditions into conformity with the revised General
Conditions of December 2018. The new language permits IDA to transition the interest rate to alternative reference
rates when a suitable alternative is available, and it is appropriate to do so. During FY21, IDA distributed loan
agreement omnibus amendments to its borrowers. To date, IDA has made significant progress in securing countersignature of the omnibus amendments from the borrowing countries.
IDA is actively working through this transition and is analyzing the impact from multiple perspectives: lending,funding, accounting, operations, information technology, liquidity investing, risk and legal, considering the portfolioof existing loans and other instruments that use LIBOR as a benchmark. As the market undergoes fundamental changes
due to the transition to alternative reference rates, as a part of its interest rate risk management, on January 26, 2021,
IDA suspended the offering of non-concessional loans on fixed spread terms as well as the suspension of a related
conversion feature from the variable spread terms to fixed spread terms, effective from April 1, 2021. An existing
feature to permit fixing of the reference rate in loans with variable spread terms remains. IDA will continue to workwith key stakeholders, including internal subject matter experts, senior management, borrowers, industry groups andother market participants, to mitigate potential financial and operational risks to which IDA is exposed and to ensure
an orderly transition to alternative reference rates. IDA is managing the transition prudently and in a cost-effective
manner.
Exchange Rate Risk
Changes in exchange rates affect the capital adequacy of IDA when the currency of the equity supporting the loan
portfolio and other assets is different from that of the risk exposure. Accordingly, the primary objective of IDA’s
currency risk management is to protect IDA’s financial capacity, as measured by the capital adequacy framework,from exchange rate movements. To achieve this, IDA’s balance sheet is managed in multiple currencies: SDR and thecurrencies comprising the SDR basket. The exchange rate risk management methodology includes the hedging of: (i)currency risk arising from settlement of loan disbursements, loan repayments and donor contributions; (ii) debt
funding; (iii) IDA loans; (iv) donor contributions; and (v) administrative budget.
Liquidity Risk
Liquidity risk arises in the general funding of IDA’s activities and in managing its financial position. It includes therisk of IDA being unable to fund its portfolio of assets at appropriate maturities and rates, and the risk of being unable
to liquidate a position in a timely manner at a reasonable price.

IDA Management’s Discussion and Analysis: March 31, 2021

21

Management’s Discussion and Analysis

Section V: Risk Management

IDA’s aggregate liquid asset holdings are kept above a specified Prudential Minimum to safeguard against cash flowinterruptions. The Prudential Minimum is equal to 80% of 24 months of projected net outflows. For FY21, thePrudential Minimum has been set at $21.2 billion. As of March 31, 2021, IDA’s liquid assets were 170% of thePrudential Minimum.
IDA will hold liquidity above the Prudential Minimum to ensure sufficient liquidity under a wide range of shock
scenarios as well as to give it flexibility in timing its borrowing transactions and to meet working capital needs.
Operational Risk
Operational risk is defined as the risk of financial loss, or damage to IDA’s reputation resulting from inadequate or
failed internal processes, people, and systems, or from external events.
IDA recognizes the importance of operational risk management activities, which are embedded in its financial
operations. As part of its business activities, IDA is exposed to a range of operational risks including physical security
and staff health and safety, data and cyber security, business continuity, and external vendor risks. IDA’s approach toidentifying and managing operational risk includes a dedicated program for these risks and a robust process that
includes identifying, assessing and prioritizing operational risks, monitoring and reporting relevant key risk indicators,
aggregating and analyzing internal and external events, and identifying emerging risks that may affect business units
and developing risk response and mitigating actions.

22

IDA Management’s Discussion and Analysis: March 31, 2021

Management’s Discussion and Analysis

Section VI: Governance

Section VI: Governance
Senior Management Changes
There were no Senior Management changes during the period.

IDA Management’s Discussion and Analysis: March 31, 2021

23

Management’s Discussion and Analysis

List of Tables, Figures and Box

List of Tables, Figures and Box
TablesTable 1: Cumulative Net Commitments under IDA19 ................................................................................... 8
Table 2: Utilization of PSW Commitments .................................................................................................... 9
Table 3: Condensed Statement of Income ................................................................................................. 10
Table 4: Condensed Balance Sheet ........................................................................................................... 11
Table 5: Changes in Equity ......................................................................................................................... 11
Table 6: Net Loans Outstanding activity ..................................................................................................... 12
Table 7: Net Commitments of Loans and Guarantees by Region .............................................................. 12
Table 8: Net Commitments of Grants by Region ........................................................................................ 12
Table 9: Gross Disbursements of Loans and Grants by Region ................................................................ 13
Table 10: Revenue and Balances by Product Category ............................................................................. 13
Table 11: Net Non-Interest Expenses ......................................................................................................... 15
Table 12: Other Revenue (Expenses), net ................................................................................................. 15
Table 13: Deployable Strategic Capital Ratio ............................................................................................. 17
Table 14: Top Five Borrowers with the Largest Outstanding Balance ....................................................... 19
Table 15: Commercial Credit Exposure, Net of Collateral Held, by Counterparty Rating .......................... 20

FiguresFigure 1: IDA's Financial Business Model .................................................................................................... 7
Figure 2: Net Loans Outstanding ................................................................................................................ 12
Figure 3: Net Investment Portfolio .............................................................................................................. 14
Figure 4: Net Investment Revenue ............................................................................................................. 14

Box
Box 1: Selected Financial Data ..................................................................................................................... 2

24

IDA Management’s Discussion and Analysis: March 31, 2021

INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA)
CONTENTS
March 31, 2021

CONDENSED QUARTERLY FINANCIAL STATEMENTSCONDENSED BALANCE SHEET26

CONDENSED STATEMENT OF INCOME

28

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

29

CONDENSED STATEMENT OF CHANGES IN ACCUMULATED DEFICIT

29

CONDENSED STATEMENT OF CASH FLOWS

30

NOTES TO CONDENSED QUARTERLY FINANCIAL STATEMENTS

31

INDEPENDENT AUDITORS’ REVIEW REPORT56

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)25

CONDENSED BALANCE SHEET
Expressed in millions of U.S. dollars
March 31, 2021
(Unaudited)

June 30, 2020
(Unaudited)

AssetsDue from banks—Notes C and J
Unrestricted cash$

Restricted cash

466

$

650

26

24

492

674

36,302

34,670Derivative assets, net—Notes C, F and J

511

136

Receivable from affiliated organization—Note G

854

858

240,994

227,291(65,384)(61,911)

175,610

165,380(3,689)(4,420)(5)

1

171,916

160,961

2,710

2,173

Investments (including securities transferred under repurchaseor securities lending agreements of Nil—March 31, 2021;$108 million—June 30, 2020)—Notes C, G and J

Loans outstanding—Notes D, G and J
Total loans approved
Less: Undisbursed balance (including signed loan
commitments of $57,908 million—March 31, 2021; $49,580
million—June 30, 2020)
Loans outstanding
Less: Accumulated provision for loan losses
Add: Deferred loans origination costs
Net loans outstanding
Other assets—Notes C, D and G
Total assets

26$

212,785

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)$

199,472

March 31, 2021
(Unaudited)

June 30, 2020
(Unaudited)

Liabilities
Borrowings—Notes E and J
Market borrowings (at fair value)$

Concessional partner loans (at amortized cost)

14,915$

12,131

7,735

7,635

22,65019,766-108

Derivative liabilities, net—Notes C, F and J

315

590

Payable for development grants—Note H

7,617

9,141

Payable to affiliated organization—Note G

483

509

Other liabilities—Notes C and D

3,161

1,187

Total liabilities

34,22631,301

292,064

267,529

Subscriptions and contributions receivable
Cumulative discounts/ acceleration credits on subscriptions
and contributions(38,752)(22,415)(3,838)(3,771)

Subscriptions and contributions paid-in

249,474

241,343

Nonnegotiable, noninterest-bearing demand obligations on
account of members' subscriptions and contributions(12,027)(10,679)

Deferred amounts to maintain value of currency holdings

(244)

(245)

Accumulated deficit (Statement of Changes in Accumulated
Deficit)(59,245)(58,321)601(3,927)

178,559

168,171

Securities sold under repurchase agreements, securities lent
under securities lending agreements, and payable for cash
collateral received—Notes C and J

EquityMembers' subscriptions and contributions—Note B
Subscriptions and contributions committed
Less:

Accumulated other comprehensive income (loss)—Note I
Total equity
Total liabilities and equity$

212,785$

199,472

The Notes to Condensed Quarterly Financial Statements are an integral part of these Statements.

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)27

CONDENSED STATEMENT OF INCOME
Expressed in millions of U.S. dollars
Three Months Ended
March 31,
(Unaudited)
2021

Nine Months Ended
March 31,
(Unaudited)

2020

2021

2020

Interest revenue
Loans, net—Note D

$

703

$

492

$

1,584

$

1,273

Investments, net—Notes C and G

39

113

109

341

Asset/liability management derivatives, net

(4)

(7)

(13)

(16)

Borrowing expenses, net—Note E

(46)

(66)

(143)

(189)

Interest revenue, net of borrowing expenses

692

532

1,537

1,409

Provision for losses on loans and other exposures,
release—Note D

814

157

565

30

Non-interest revenue
Revenue from externally funded activities—Note G

198

232

557

652

Commitment charges—Note D

5

4

14

11

Other

5

3

12

11

Total

208

239

583

674

(574)

(590)

(1,700)(1,772)Contributions to special programs—Note G

(2)

-

(20)

(21)

Other

2

(20)

24

(30)

Total

(574)

(610)

(1,696)(1,823)

331

-

331

252

(1,630)(350)(2,562)(729)

Non-functional currency translation adjustment
gains (losses), net

166

222

(333)

239

Unrealized mark-to-market gains on InvestmentsTrading portfolio, net—Notes F and J

20

152

104

171

Unrealized mark-to-market gains (losses) on nontrading portfolios, net—Note J

954

(987)

1,349

(664)

Non-interest expenses
Administrative—Note G

Transfers from affiliated organizations and others—
Note G
Development grants—Note H

Net income (loss)

$

981

$

(645)

$

(122)

$

The Notes to Condensed Quarterly Financial Statements are an integral part of these Statements.

28

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)(441)

CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Expressed in millions of U.S. dollars
Three Months Ended
March 31,
(Unaudited)
2021
2020
Net income (loss)
Other comprehensive (loss) income—Note I
Currency translation adjustments on functional
currencies
Net Change in Debit Valuation Adjustment (DVA) on
Fair Value option elected liabilities
Comprehensive (loss) income

$

$

981 $

Nine Months Ended
March 31,
(Unaudited)
2021
2020

(645)

$

(122) $

(441)

(2,672)(1,978)4,577(2,880)(17)(1,708) $51(2,572)(49)
4,406 $

51
(3,270)$CONDENSED STATEMENT OF CHANGES IN ACCUMULATED DEFICIT
Expressed in millions of U.S. dollars

Nine Months Ended
March 31,
(Unaudited)
2021
2020

Accumulated deficit at beginning of the fiscal year$

(58,321)$(57,207)

Cumulative effect of change in accounting principle—Note A and D

(802)

-

Net loss for the period

(122)

(441)

Accumulated deficit at end of the period$(59,245)$(57,648)

The Notes to Condensed Quarterly Financial Statements are an integral part of these Statements.

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)29

CONDENSED STATEMENT OF CASH FLOWS
Expressed in millions of U.S. dollars
Nine Months Ended
March 31,
(Unaudited)
2021
2020
Cash flows from investing activities
Loans
Disbursements
Principal repayments
Principal prepayments
Non-trading securities—Investments
Principal payments received
Net cash used in investing activities
Cash flows from financing activities
Members' subscriptions and contributions
Medium and long-term borrowings
New issues
Retirements
Short-term borrowings (original maturities greater than 90 days)
New issues
Retirements
Net short-term borrowings (original maturities less than 90 days)
Net derivatives-borrowings
Net cash provided by financing activities
Cash flows from operating activities
Net loss
Adjustments to reconcile net loss to net cash used in operating activities
Provision for losses on loans and other exposures, releaseNon-functional currency translation adjustment losses (gains), net
Unrealized mark-to-market (gains) losses on non-trading portfolios, net
Other non-interest (income) expenses, net
Amortization of borrowing costs
Changes in:
Net Investment portfolio
Other assets and liabilities
Net cash used in operating activities
Effect of exchange rate changes on unrestricted and restricted cash
Net (decrease) increase in unrestricted and restricted cash
Unrestricted and restricted cash at beginning of the fiscal year
Unrestricted and restricted cash at end of the period
Supplemental disclosure
Increase (Decrease) in ending balances resulting from exchange rate
fluctuations:
Loans outstanding
Investment portfolio
Derivatives—Asset/liability management
Borrowings
Principal repayments written off under Heavily Indebted Poor Countries (HIPC)
Debt Initiative
Loans prepaid - carrying value
Interest paid on borrowing portfolio$(10,326) $4,885-(9,240)
4,458
51

125
(5,316)125(4,606)

6,782

6,353

5,333
(73)

4,164
(25)

4,342
(8,309)
1,296
8
9,379

7,776
(6,781)
29(30)
11,486

(122)

(441)

(565)
333
(1,349)
(24)
71

(30)
(239)
664
30
109

(29)
(2,607)(4,292)(4,899)(1,708)(6,514)

$

$

47
(182)
674
492 $

(11)
355
138
493

4,796 $
1,025
(769)
540

(2,836)
(739)
496
(236)

7
99

The Notes to Condensed Quarterly Financial Statements are an integral part of these Statements.

30

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

8
54
72

NOTES TO CONDENSED QUARTERLY FINANCIAL STATEMENTSNOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING AND RELATED POLICIESBasis of Preparation
These unaudited condensed quarterly financial statements and notes should be read in conjunction with the June 30,
2020 audited financial statements and notes included therein. The condensed comparative information that has been
derived from the June 30, 2020 audited financial statements has not been audited. In the opinion of management, thecondensed quarterly financial statements reflect all adjustments necessary for a fair presentation of IDA’s financial
position and results of operations in accordance with accounting principles generally accepted in the United Statesof America (U.S. GAAP).
Management makes estimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the condensed quarterly financial statements and thereported amounts of revenue and expenses during the reporting periods. Due to the inherent uncertainty involved in
making those estimates, actual results could differ from those estimates. Areas in which significant estimates havebeen made include, but are not limited to, the provision for losses on loans and other exposures and valuation ofcertain financial instruments carried at fair value. The results of operations for the first nine months of the current
fiscal year are not necessarily indicative of the results that may be expected for the full year.
Certain reclassifications of the prior year’s information have been made to conform with the current year’s
presentation.
These financial statements were issued on May 14, 2021 which was also the date through which IDA’s management
evaluated subsequent events.
Accounting and Reporting Developments
Accounting standards evaluated:
In January 2021, the FASB issued ASU 2021-01 - Reference Rate Reform (Topic 848): Scope. The ASU permits
entities to elect certain optional expedients and exceptions when accounting for derivative contracts affected bychanges in the interest rates used in computations affected by reference rate reform activities. IDA adopted thestandard prospectively effective March 31, 2021, as permitted by the ASU, and the adoption did not have a material
impact on the financial statements.
In March 2020, the FASB issued ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects ofReference Rate Reform on Financial Reporting. The ASU provides temporary optional expedients and exceptions to
the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden of
the expected market transition from LIBOR and other interbank offered rates. To be eligible for the optional
expedients, modifications of contractual terms that change (or have the potential to change) the amount or timing ofcontractual cash flows must be related only to replacement of a reference rate. The relief is temporary and is only
available through December 31, 2022. IDA will apply the standard consistently to contractual amendments made to
all applicable floating rate instruments indexed to IBOR (inter-bank offered rate) rates. IDA adopted the standard
effective June 30, 2020 and the adoption did not have a material impact on the financial statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework –Changes to the Disclosure Requirements for Fair Value Measurement, which amends the disclosure requirements of
ASC 820. The guidance became effective for IDA from the quarter ending September 30, 2020. The adoption of thisASU had no material impact on IDA’s financial statements.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement ofCredit Losses on Financial Instruments (CECL ASU). The ASU and its subsequent amendments introduce a newmodel for the accounting of credit losses of loans and other financial assets measured at amortized cost. The current
expected credit loss (CECL) model, requires an entity to estimate the credit losses expected over the life of an
exposure, considering historical information, current information, and reasonable and supportable forecasts.
Additionally, the ASUs require enhanced disclosures about credit quality and significant estimates and judgments
used in estimating credit losses.
For IDA, the ASUs became effective on July 1, 2020. The transition adjustment increased the Accumulated
Deficit by $802 million, which reflects the increase in the credit losses relating to loans and other exposures under
IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)31

CECL compared to the previous “incurred loss” model. The impact is mainly driven by the requirement to provision
over the full life of IDA’s long maturity profile credit exposures as well as the inclusion of signed loan
commitments in the determination of the provision.
See the table below for details of the CECL transition adjustment as of July 1, 2020. The transition adjustment had
no impact on the Statement of Income. See Note D — Loans and Other Exposures, for additional details.
In millions of U.S. dollars

Debt Relief under HIPC/MDRI
Signed loan commitments

Location on the Condensed
Balance Sheet
Accumulated provision for loan
losses
Accumulated provision for loan
lossesOther liabilities

Other exposures

Other liabilities

Accumulated provision related toLoans outstanding

June 30, 2020
As reported

Impact of the
adoption of the
CECL ASU

July 1, 2020
Adjusted

$

$

$

2,829
1,591
-

(59)

2,770

859

72

1,591
859

2

74

Total accumulated provision

$

4,492

$

802

$

5,294

Accumulated Deficit$(58,321)

$

(802)

$

(59,123)

As a result of the implementation of CECL, the significant accounting policies have been updated as follows.
Accumulated Provision for Losses on Loans and Other Exposures: Management determines the appropriate level ofthe accumulated provision for losses, which reflects the expected losses inherent in IDA’s exposures. The exposures
are disaggregated into two groups: exposures in accrual status and exposures in nonaccrual status. For countries in
accrual status, these exposures are grouped in pools of borrowers with similar risk rating categories. The expectedcredit losses related to loans and other exposures are calculated over the life of the instruments by multiplying theannual expected exposures, by the expected default frequency (probability of default to IDA) and by the estimatedseverity of the loss given default. The provision for expected losses is the sum of the expected annual losses over the
expected life of the instruments. The total exposure for provisioning under CECL is the current exposure and the
expected exposure over the life of the instrument. Each risk rating is mapped to the expected default frequency
based on historical observations of credit ratings at the beginning and at the end of each year. Expected losses on
loan exposures comprise estimates of losses arising from default and nonpayment of principal and interest amounts
due, as well as the economic loss due to delay in receiving payments. The severity of loss given default isdetermined at each balance sheet date, based on historical experience as well as parameters adjusted for current
conditions during the reasonable and supportable forecast period of IDA. The severity of loss is dependent on the
borrower’s eligibility, namely: IDA, Blend (IBRD and IDA) and IBRD, with the highest severity associated with
IDA. The borrower’s eligibility is assessed at least annually. The main factors used to determine the loss severity are
the delays in receiving loan payments resulting in economic losses to IDA based on the effective interest rate of the
exposure, as well as the length of time in nonaccrual status.
For the calculation of expected credit losses, IDA applies a three-year reasonable and supportable forecast period as
IDA has the most reliable and available economic data during this period. Beyond this period, IDA also applies tenyear straight-line reversion to mean to reflect the historical pattern of ratings migration to the mean of the loan
portfolio. All exposures in nonaccrual status are individually assessed.
Loan commitments: With the implementation of CECL, IDA now records provisions for expected losses on
undisbursed loan commitments including Deferred Drawdown Options (DDOs), when signed. The signature of theloan agreement is a binding event that prevents IDA from withdrawing from the agreement unconditionally. The
projected disbursements of signed loan commitments, adjusted by the cancellations based on historical experience,is multiplied by the probability of losses and loss given default to determine the expected credit losses related to loan
commitments. The provision is presented in Other liabilities on the Condensed Balance Sheet.
Guarantees: IDA records a contingent liability for the expected losses related to guarantees over the projected life of
the instruments. IDA records a contingent liability based on the estimated exposure at default multiplied by thecorresponding loss given default and expected default probability for the projected life of the guarantee.

32

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)NOTE B—MEMBERS’ SUBSCRIPTIONS AND CONTRIBUTIONS
The movement in Subscriptions and Contributions paid-in is summarized below:
Table B1: Subscriptions and contributions paid-in
In millions of U.S. dollars
March 31, 2021
Beginning of the fiscal year$

June 30, 2020

241,343$

234,078

Cash contributions received

2,563

3,336

Demand obligations received

4,901

4,233

Translation adjustment667

End of the period/fiscal year$

249,474(304)$

241,343

During the nine months ended March 31, 2021, IDA encashed demand obligations totaling $4,219 million.
NOTE C—INVESTMENTS
The investment securities held by IDA are designated as either trading or non-trading. All securities are carried andreported at fair value, or at face value, which approximates fair value.
As of March 31, 2021, IDA’s Investments were mainly comprised of government and agency obligations (69%),
with all the instruments being classified as either Level 1 or Level 2 within the fair value hierarchy. As of March 31,
2021, the largest holding of Investments-Trading with a single counterparty was Japanese government instruments(22%). All of IDA’s investment as of March 31, 2021 were rated A and above, by a major rating agency.
A summary of IDA’s Investments is as follows:
Table C1: Investments-composition
In millions of U.S. dollars
March 31, 2021
Trading
Government and agency obligations
Time deposits
Asset-backed securities (ABS)
Non-trading
Debt securities
Total

$

$

24,948
10,77497
35,819$483
36,302June 30, 2020$$

24,1988,398
1,449
34,045$625
34,670IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

33

IDA manages its investments on a net portfolio basis. The following table summarizes IDA’s net portfolio position:
Table C2: Net investment portfolio position
In millions of U.S. dollars
March 31, 2021
Investments
Trading
Non-trading
Total

$

35,819483
36,302June 30, 2020$

34,045625
34,670

Securities sold under repurchase agreements, securities lent under
securities lending agreements, and payable for cash collateral received a

(73)

(109)

Derivative Assets
Currency swaps and currency forward contracts
Interest rate swaps
Other b
Total

377
377

19
1
3
23

Derivative Liabilities
Currency swaps and currency forward contracts
Interest rate swaps
Other b
Total

(83)
(20)
(103)

(143)
(6)
(1)
(150)

399
447
(898)
36,451

602
636
(101)
35,571

Cash held in investment portfolio cReceivable from investment securities traded and other assets d
Payable for investment securities purchased e
Net Investment Portfolio$$a. Includes $73 million of cash collateral received from counterparties under derivative agreements ($2 million - June 30, 2020,
including $1 million excess collateral).
b. These relate to To-Be-Announced (TBA) securities, swaptions, exchange traded options and futures contracts.
c. This amount is included in Unrestricted cash under Due from Banks on the Condensed Balance Sheet.
d. This amount is included in Other assets on the Condensed Balance Sheet.
e. As of March 31, 2021 there were no short sales (less than $0.5 million - June 30,2020).

34

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)IDA uses derivative instruments to manage currency and interest rate risk in the investment portfolio. For details
regarding these instruments, see Note F—Derivative Instruments.
The maturity structure of IDA’s non-trading investment portfolio (principal amount due) was as follows:
Table C3: Maturity structure of non-trading investment portfolio
In millions of U.S dollars
MaturityLess than 1 year
Between1 - 2 years
2 - 3 years
3 - 4 years
4 - 5 years
Thereafter
Total

$

March 31, 2021
113

$

96
77
62
34
90
472

$

June 30, 2020
125

$

113
96
77
62
124
597

Commercial Credit Risk
For the purpose of risk management, IDA is party to a variety of financial transactions, certain of which involve
elements of credit risk. Credit risk exposure represents the maximum potential loss due to possible nonperformanceby obligors and counterparties under the terms of the contracts. For all securities, IDA limits trading to a list of
authorized dealers and counterparties. In addition, credit limits have been established for counterparties by type of
instrument and maturity category.
Swap Agreements: Credit risk is mitigated through a credit approval process, volume limits, monitoring procedures
and the use of mark-to-market collateral arrangements. IDA may require collateral in the form of cash or otherapproved liquid securities from individual counterparties to mitigate its credit exposure.
IDA has entered into master derivative agreements, which contain legally enforceable close-out netting provisions.
These agreements may further reduce the gross credit risk exposure related to the swaps. Credit risk with financial
assets subject to a master derivatives arrangement is further reduced under these agreements to the extent thatpayments and receipts with the counterparty are netted at settlement. The reduction in exposure as a result of these
netting provisions can vary due to the impact of changes in market conditions on existing and new transactions. The
extent of the reduction in exposure may therefore change substantially within a short period of time following thebalance sheet date. For more information on netting and offsetting provisions, see Note F—Derivative Instruments.
The following is a summary of the collateral received by IDA in relation to swap transactions.
Table C4: Collateral received
In millions of U.S. dollars
March 31, 2021
Collateral received
Cash
Securities
Total collateral received
Collateral permitted to be repledged
Amount of collateral repledged
Amount of Cash Collateral invested

$
$
$
$

June 30, 2020
73
6
79
79
52

$
$
$

68
68
68
-

Securities Lending: IDA may engage in securities lending and repurchases, against adequate collateral, as well as
securities borrowing and reverse repurchases (resales) of government and agency obligations, and ABS.
These transactions have been conducted under legally enforceable master netting arrangements, which allow IDA toreduce its gross credit exposure related to these transactions. As of March 31, 2021, there were no amounts which
could potentially be offset as a result of legally enforceable master netting arrangements (Nil—June 30, 2020).

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)35

Transfers of securities by IDA to counterparties are not accounted for as sales as the accounting criteria for thetreatment as a sale have not been met. Counterparties are permitted to repledge these securities until the repurchasedate.
Securities lending agreements and repurchase agreements expose IDA to several risks, including counterparty risk,
reinvestment risk, and risk of a collateral gap (increase or decrease in the fair value of collateral pledged). IDA has
procedures in place to ensure that trading activity and balances under these agreements are below predefinedcounterparty and maturity limits, and to actively monitor net counterparty exposure, after collateral, through daily
mark-to-market. Whenever the collateral pledged by IDA related to its borrowings under securities lending
agreements and repurchase agreements declines in value, the transaction is re-priced as appropriate by returning
cash or pledging additional collateral.
As of March 31, 2021, there were no securities transferred under repurchase or securities lending agreements ($108
million — June 30, 2020).
As of March 31, 2021, there were no liabilities relating to securities transferred under repurchase or securities
lending agreements ($107 million — June 30, 2020, comprised entirely of government and agency obligations, withagreements of overnight and continuous remaining contractual maturity).
As of March 31, 2021, none of the liabilities relating to securities transferred under repurchase or securities lending
agreements remained unsettled at that date (Nil—June 30, 2020). There were no replacement trades entered into in
anticipation of maturing trades of a similar amount (Nil—June 30, 2020).
In the case of resale agreements, IDA receives collateral in the form of liquid securities and is permitted to repledge
these securities. While these transactions are legally considered to be true purchases and sales, the securities
received are not recorded on IDA’s balance sheet as the accounting criteria for treatment as a sale have not been
met. As of March 31, 2021, and June 30, 2020, there were no securities purchased under resale agreements, nor were
there any such instruments that remained unsettled on those dates.
NOTE D—LOANS AND OTHER EXPOSURESIDA’s loans and other exposures are generally made to, or guaranteed by, member countries of IDA. Loans arecarried at amortized cost. Other exposures include: DDOs, Irrevocable Commitments and Guarantees. Based on
IDA’s internal credit quality indicators, the majority of the loans outstanding are in the Medium and High-risk
classes.
As permitted by CECL, IDA excludes the interest receivable balance from the amortized cost basis and the related
disclosures. As of March 31, 2021, accrued interest income on loans of $144 million, are presented in Other assets
on the Condensed Balance Sheet ($116 million – June 30, 2020).
Sudan paid all overdue amounts on March 25, 2021 and all remaining loans to Sudan were restored to accrual statuson that date, in accordance with IDA’s policy. As of March 31, 2021, loans outstanding totaling $926 million(representing 0.53% of the portfolio) from three borrowers were in nonaccrual status.
Credit Quality of Sovereign Loans
Based on an evaluation of IDA’s exposures, management has determined that IDA has one portfolio segment –Sovereign Exposures. IDA’s loans constitute the majority of the Sovereign Exposures portfolio segment.
IDA’s country risk ratings are an assessment of its borrowers’ ability and willingness to repay IDA on time and in
full. These ratings are internal credit quality indicators. Individual country risk ratings are derived on the basis ofboth quantitative and qualitative analyses. The components considered in the analysis can be grouped broadly into
eight categories: political risk, external debt and liquidity, fiscal policy and public debt burden, balance of payments
risks, economic structure and growth prospects, monetary and exchange rate policy, financial sector risks, andcorporate sector debt and vulnerabilities. For the purpose of analyzing the risk characteristics of IDA’s exposures,
these exposures are grouped into three classes in accordance with assigned borrower risk ratings, which relate to thelikelihood of loss: Low, Medium and High-risk classes, as well as exposures in nonaccrual status.
IDA’s borrower country risk ratings are key determinants in the provision for loan losses as sovereign exposures aregrouped in pools of borrowers with similar risk ratings for the purpose of the calculation of the expected credit
losses. Country risk ratings are determined in review meetings that take place several times a year. All countries arereviewed at least once a year, or more frequently if circumstances warrant, to determine the appropriate ratings.
36

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)An assessment was also performed to determine whether a qualitative adjustment was needed to reflect the impact of
COVID-19 in the loan loss provision as of March 31, 2021. Management concluded that a qualitative adjustment
beyond the regular application of IDA’s loan loss provision framework was not warranted.
IDA considers loans to be past due when a borrower fails to make payment on any principal, interest or othercharges due to IDA on the dates provided in the contractual loan agreement.
The following tables provide an aging analysis of loans outstanding:
Table D1: Loans-Aging structure
In millions of U.S. dollars
March 31, 2021
Days past due
Risk Class
Low
MediumHigh
Loans in accrual status
Loans in nonaccrual status
Total

Up to 45
$

$

46-60

- $
3
3
6
9 $

61-90
- $
*
* $

91-180
- $
*
*
1
1 $

Over 180

- $
*
*
10
10 $

Total Past
Due

- $
*
*
387
387 $

Current

Total

- $
726 $
726
23,28823,2883
150,667 a
150,6703
174,681
174,684404522
926
407 $ 175,203 $ 175,610

Table D1.1:
In millions of U.S. dollars
June 30, 2020
Days past due
Risk Class
Low
MediumHigh
Loans in accrual status
Loans in nonaccrual status
Total

Up to 45
$

$

* $
3
3
10
13 $

46-60

61-90
- $
*
*
1
1 $

91-180
- $
*
*
3
3 $

Over 180

- $
20
20 $

Total Past
Due

- $
1,131
1,131 $

Current

Total

* $
985 $
985
23,10023,1003
139,195 a
139,1983
163,280
163,283
1,165
932
2,097
1,168 $ 164,212 $ 165,380

a. Includes PSW-related loans of $11 million ($5 million-June 30, 2020).
* Indicates amount less than $0.5 million

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)37

IDA considers the signature date of a loan as the best indicator of the decision point in the origination process, rather
than the disbursement date.
The table below discloses the outstanding balances of IDA’s loan portfolio as of March 31, 2021 classified by theyear the loan agreement was signed.
Table D2: Loan portfolio vintage disclosure
In millions of U.S. dollars
March 31, 2021
Fiscal Year of origination

Risk Class
Low$

MediumHigh
Loans in accrual
statusLoans in nonaccrual
status
Total

2021

2020
-

$

2019
-

$

2018
-

$

Prior
Years

2017
-

$

-

$

726

CAT DDOs
disbursed
andrevolvingCAT
DDOs
Converted
to Term
Loans

Loans
Outstanding
as of March
31, 2021

$

$

$

-

-

726

400

562

254

51

437

21,584--23,288

2,081

5,750

7,523

7,784

8,393

118,774365-

150,670

2,481

6,312

7,777

7,835

8,830

141,084365-

174,684

-

-

-

-

-

926

$ 2,481$ 6,312$ 7,777$ 7,835$ 8,830$ 142,010

$

365

$

-

926
$

175,610

There were no Catastrophe Deferred Drawdown Option (CAT DDO) outstanding and revolving converted to termloans during the three and nine months ended March 31, 2021.
Accumulated Provision for Losses on Loans and Other Exposures
Management determines the appropriate level of accumulated provision for losses, which reflects the expected
losses inherent in IDA’s exposures. Delays in receiving loan payments result in economic losses to IDA since it does
not charge additional interest on any overdue interest or loan charges. These economic losses are equal to thedifference between the present value of payments of interest and charges made according to the related loan'scontractual terms and the present value of its expected future cash flows. Except for debt relief provided under the
HIPC Debt Initiative and Multilateral Debt Relief Initiative (MDRI), and any provision for losses under themechanism to buy-down loans, it is IDA’s practice not to write off its loans. To date, no loans have been written off,
other than under the HIPC Debt Initiative, MDRI and the buy-down mechanism. The risk of losses associated with
nonpayment of principal amounts due is included in the accumulated provision for losses on loans and otherexposures.
Management reassesses the adequacy of the accumulated provision on a quarterly basis and adjustments to theaccumulated provision are recorded as a charge to or release of provision in the Statement of Income. In addition,
reasonableness of the inputs used are reassessed on a periodic basis, at least annually.
Provision for the HIPC Debt Initiative and MDRI includes provisions that are based on quantitative and qualitative
analyses of various factors, including estimates of Decision Point and Completion Point dates. These factors arereviewed periodically as part of the reassessment of the adequacy of the accumulated provision for loan losses.
Provisions are released as qualifying debt service becomes due and is forgiven under the HIPC Debt Initiative andare reduced by the amount of eligible loans written off when the country reaches Completion Point and becomes
eligible for MDRI debt relief.
During the nine months ended March 31, 2021 and the fiscal year ended June 30, 2020, there were no loans written
off under the MDRI.
The balance of accumulated provision as of July 1, 2020 was increased by an $802 million transition adjustment
recorded upon adoption of CECL. The transition adjustment corresponds to the difference between the accumulated
provision calculated under the previous “incurred loss” model and the CECL model. Changes to the Accumulated
provision for losses on loans and other exposures are summarized below.

38

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)Table D3: Accumulated provisions
In millions of U.S. dollars
March 31, 2021

Loans
outstanding
Accumulated provision, beginning of the fiscal year $2,829
CECL Transition adjustment(59)
Adjusted accumulated provision at the beginning of
the fiscal year
2,770
Provision, net - charge (release) a
98
Loans written off under:
HIPC/MDRITranslation adjustment
80
Accumulated provision, end of the period$
2,948
Including accumulated provision for losses on:
Loans in accrual status
Loans in nonaccrual status
Total

$
$

Loan
commitments$
859

Debt relief
under
HIPC/MDRI
$
1,591
-

Other
$
72
2

859
154

1,591
(857) b

74
40

5,294
(565)

(1)
113

(7)
115
4,837

$

22
1,035

2,696
252
2,948

$
$
$

(7) d
14
741 $
448
293
741

$

Total
4,492
802

$
$

3,144
545
3,689

$

Loans:
Loans in accrual status
Loans in nonaccrual status
Total

$
$

174,684926
175,610

Table D3.1:
In millions of U.S. dollars
June 30, 2020
Loans
outstanding
Accumulated provision, beginning of the fiscal year $2,826
Provision, net - charge (release) a
33
Loans written off under:
Prepayments(3)
HIPC/MDRITranslation adjustment(27)
Accumulated provision, end of the period$
2,829
Including accumulated provision for losses on:
Loans in accrual status
Loans in nonaccrual status
Total
Loans:
Loans in accrual status
Loans in nonaccrual status
Total

$
$

2,556
273
2,829

Loan
commitments
$
-

$

-

Debt relief
under
HIPC/MDRI
Other$
1,812 $
70(206) c3$$$(10) d(5)
1,591 $
201
1,390
1,591

(1)
72

$

Total
4,708
(170)
(3)
(10)
(33)
4,492

$
$

2,757
1,663
4,420

$
$
$

163,283
2,097
165,380

a. For the nine months ended March 31, 2021, the provision does not include any discount on prepayment of loans ($3 millionJune 30, 2020)
b. Includes $819 million release of Sudan HIPC provision due to arrears clearancec. Includes $280 million release of Somalia HIPC provision due to arrears clearance
d. Represents debt service reduction under HIPCIDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

39Condensed Balance Sheet
Accumulated Provision forLosses on:
Loans outstanding
Debt Relief under
HIPC/MDRI
Loan commitments and Other
Exposures

Reported as Follows
Condensed Statement of Income

Accumulated provision for loan losses

Provision for losses on loans and otherexposures, release
Provision for losses on loans and otherexposures, release
Provision for losses on loans and otherexposures, release

Accumulated provision for loan losses
Other liabilities

Overdue Amounts
As of March 31, 2021, there were no new principal or charges under sovereign loans in accrual status which were
overdue by more than three months.
On March 25, 2021, Sudan paid all of their overdue principal and charges due to IDA of $849 million and $244
million, respectively. The outstanding loans remaining to Sudan were restored to accrual status on that date, in
accordance with IDA’s policy. Revenue from loans for the nine months ended March 31, 2021, increased by $244
million, which represents service charges received on March 25, 2021, that would have been recognized in previous
periods had these loans been in accrual status. The arrears clearance of the overdue payments to IDA for Sudan was
accomplished using a bridge financing provided by a member country. On the same day, IDA disbursed two
development grants totaling $1.3 billion to Sudan in support of re-engagement and reform programs. Sudan used$1.1 billion of the proceeds from the program to repay the bridge financing. Sudan’s arrears clearance led to a $831
million release of loan loss provision.
The following tables provide a summary of selected financial information related to loans in nonaccrual status:
Table D4: Loans in nonaccrual status
In millions of U.S. dollars
Overdue amounts
Nonaccrual
since

Borrower

Recorded
investment a

Eritrea
Syrian Arab
Republic

March 2012$

June 201214

Zimbabwe

October 2000

469

Averagerecorded
investment b

443 $Principal
Outstanding

445 $Provisionfor debt
reliefProvision
for loanlosses b$

Principal

16 $Charges

443 $

293

97 $

32

14

14

-

1

12

1

472

469

-

235

295

66

Total - March 31, 2021

$

926 $

931 $

926 $

293

$

252 $

404 $

99

Total - June 30, 2020$

2,097 $

2,093 $

2,097 $

1,390

$

273 $

1,165 $

324

a. A loan loss provision has been recorded against each of the loans in nonaccrual status.
b. Loan loss provisions are determined after taking into account accumulated provision for debt relief.

During the nine months ended March 31, 2021 and March 31, 2020, no new loans were placed into nonaccrual
status.
Table D5: Service charge revenue not recognized
In millions of U.S. dollars
Three months ended
March 31,2021
2020
Service charge revenue not recognized as a result of loans being in nonaccrual
status

$

2 $

3 $

Nine months ended
March 31,
2021
2020
5 $

During the three and nine months ended March 31, 2021, no service charge revenue was recognized on loans in
nonaccrual status (nil and less than $1 million– three months and nine months ended March 31, 2020).

40

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)12

Guarantees
Guarantees of $2,511 million were outstanding as of March 31, 2021 ($2,362 million—June 30, 2020). This amountincludes $468 million relating to the PSW ($308 million—June 30, 2020). The outstanding amount of guarantees
represents the maximum potential undiscounted future payments that IDA could be required to make under theseguarantees and is not included on the Condensed Balance Sheet. The guarantees have original maturities ranging
between 1 and 22 years and expire in decreasing amounts through 2040.
As of March 31, 2021, liabilities related to IDA’s obligations under guarantees of $139 million ($138 million—June
30, 2020), have been included in Other liabilities on the Condensed Balance Sheet. These include the accumulated
provision for guarantee losses of $103 million ($66 million—June 30, 2020). The cumulative effect of the adoptionof CECL was a decrease of $3 million in the accumulated provision for guarantee losses as of July 1, 2020.
During the nine months ended March 31, 2021 and March 31, 2020, no guarantees provided by IDA to sovereign or
sub-sovereign borrowers were called. As of March 31, 2021, IDA-PSW Blended Finance Facility guarantees under
the Small Loan Guarantee Program pursuant to the risk-sharing agreement between IDA and IFC were called for an
amount less than $0.5 million. During the nine months ended March 31, 2020, no guarantees provided by IDA under
the PSW were called.
Concentration Risk
Loan revenue comprises service charges and interest charges on outstanding loan balances. For the nine months
ended March 31, 2021, loan revenue of $181 million and $162 million from two countries, were each individually inexcess of ten percent of total loan revenue.
The following table presents IDA’s loans outstanding and associated loan revenue by geographic region:
Table D6: Loan revenue and outstanding loan balances by geographic region
In millions of U.S. dollars

RegionSouth Asia
Eastern and Southern Africa a
Western and Central Africa a
East Asia and Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
Others c
Total

Service andInterest
Charges
$
503
537
241
171
87
31
15
$
1,585

As of and for the Nine months ended March 31,
2021
2020
Service and
LoansInterest
Loans
Outstanding
Charges
Outstanding$
62,403$464$
57,375b
46,325324
40,89833,051
194
28,217
20,344156
19,206
7,809
95
7,410
3,146
25
2,768
2,521
15
2,558
11
5
$
175,610$
1,273$
158,437

a. Effective July 1st, 2020, Africa region has been reorganized into two regions: Eastern and Southern Africa & Western andCentral Africa.
b. Includes $247 million of service charges pertaining to Sudan.
c. Represents loans under the PSW.

NOTE E—BORROWINGS
IDA’s borrowings comprise concessional partner loans made by IDA members (carried at amortized cost) as well as
market borrowings (carried at fair value).
Table E1: Borrowings – concessional partner loans outstanding
In millions of U.S dollars
Concessional Partner Loans outstanding
Principal at
Net unamortizedface value
premium (discount)
March 31, 2021
June 30, 2020

$
$

9,482
9,360

$
$

(1,747)(1,725)

Total

$
$

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

7,735
7,635

41

As of March 31, 2021, all of the instruments in IDA’s borrowing portfolio were classified as Level 2, within the fairvalue hierarchy.
IDA uses derivative contracts to manage the currency risk as well as the interest rate risk in the market borrowings
portfolio. For details regarding the derivatives used, see Note F—Derivative Instruments.
Table E2: Market borrowings after derivatives, at fair value
In millions of U.S. dollars
March 31, 2021
14,915(63)
158$
15,010Market borrowings
Currency swaps, net
Interest rate swaps, net
Total

$

$

$

June 30, 2020
12,13140(153)
12,018NOTE F—DERIVATIVE INSTRUMENTS
IDA uses derivative instruments in its investment, loan and borrowing portfolios to manage currency and interest
rate risks, for asset/liability management purposes, and to assist clients in managing risks.
The following table summarizes IDA’s use of derivatives in its various financial portfolios.
Table F1: Use of derivatives in various financial portfolios
Portfolio

Derivative instruments used

Purpose/Risk being managed

Investments—Trading

Interest rate swaps, currency forward contracts,
currency swaps, options, swaptions, futurescontracts, and TBA securities

Manage currency and interest rate risk in theportfolio.

Other assets/liabilities

Currency forward contracts, currency swaps andinterest rate swaps

Manage currency and interest rate risks.

Loans

Interest rate swaps

Manage interest rate risk in the portfolio.

Borrowings

Interest rate swaps and currency swaps

Manage currency and interest rate risk in theportfolio.

Structured swaps

Assist clients in managing risks.

Risk management purposes:

Other purposes:
Client operations

The derivatives in the related tables of Note F are presented on a net basis by instrument. A reconciliation to theCondensed Balance Sheet presentation is shown in table F2.
Offsetting assets and liabilities
IDA enters into International Swaps and Derivatives Association, Inc. (ISDA) master netting agreements with
substantially all of its derivative counterparties. These legally enforceable master netting agreements give IDA theright to liquidate securities held as collateral and to offset receivables and payables with the same counterparty, inthe event of default by the counterparty.
The following tables summarize information on derivative assets and liabilities (before and after netting
adjustments) that are reflected on IDA’s condensed balance sheet. Gross amounts in the tables represent the amounts
receivable (payable) for instruments which are in a net asset (liability) position. The effects of legally enforceable
master netting agreements are applied on an aggregate basis to the total derivative asset and liability positions. The
net derivative asset positions have been further reduced by the cash and securities collateral received.

42

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)Table F2: Derivatives assets and liabilities before and after netting adjustments
In millions of U.S. dollars
March 31, 2021
Located on the Balance Sheet
Derivative Assets
Derivative Liabilities

Interest rate swaps
Currency swaps a
Other b
Total
Less:
Amounts subject to legally
enforceable master netting
agreements
Cash collateral received c

GrossAmounts$
1,926
18,723$ 20,649

Net derivative positions on
the Balance Sheet

Gross
Amounts
Offset$(1,417)(18,033)$ (19,450)

Net
Amounts
$
509
690
$
1,199

$

615
73

$

511

Less:
Securities collateral received c

d

Gross
Amounts$
1,251
14,773$16,024Gross
Amounts
Offset$(908)(14,197)$ (15,105)eNet
Amounts
$
343
576
$
919

$

604

$

315

d

f

6

Net derivative exposure after
collateral$

505

Table F2.1:
In millions of U.S. dollars

Interest rate swaps
Currency swaps a
Other b
Total
Less:
Amounts subject to legally
enforceable master netting
agreements
Cash collateral received c
Net derivative positions on
the Balance Sheet

Gross
Amounts$
189
10,622
3$ 10,814

June 30, 2020
Located on the Balance Sheet
Derivative Assets
Derivative Liabilities
Gross
Gross
Amounts
Net
Gross
Amounts
OffsetAmounts
Amounts
Offset
$
(30)
$
159
$
2,328
$
(1,231)(9,909)713
7,857(7,593)3
1$(9,939)$875 d $
10,186$(8,824)

$

738
1

$

136

Less:
Securities collateral received c
Net derivative exposure after
collateraleNet
Amounts$ 1,097264
1$ 1,362

$

772

$

590

d

f

68
$

68

a. Includes currency forward contracts.
b. These include swaptions, exchange traded options, futures contracts and TBA securities.
c. Does not include excess collateral received.
d. Based on the net value per a derivative instrument.
e. Includes $14 million Credit Value Adjustment (CVA) ($7 million-June 30, 2020).
f. Includes $3 million Debit Value Adjustment (DVA) ($41 million-June 30, 2020).

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

43

The following table provides information about the notional amounts and credit risk exposures, at the instrument
level, of IDA’s derivative instruments.
Table F3: Credit risk exposure of the derivative instruments
In millions of U.S. dollars

Interest rate
swaps
Investments - Trading
Asset/liability management
Other b
Total Exposure

$

$

370
139
509

March 31, 2021
Currency swaps(including currency
forward contracts)
$
377
$
214
99
$
690
$

Other a

Total
-

$

$

377
584
238
1,199

Table F3.1
In millions of U.S. dollars
Interest rate
swaps
Investments - Trading
Asset/liability management
Other b
Total Exposure

$

$

1
158
159

June 30, 2020
Currency swaps(including currency
forward contracts)
$
19
$
691
3
$
713
$

Other a

Total
3
3

$

$

23
691
161
875

a. Includes swaptions, exchange traded options and futures contracts and TBAs. Exchange traded instruments are generally
subject to daily margin requirements and are deemed to have no material credit risk. All swaptions, options, and futures contracts
are interest rate contracts.
b. Include derivatives related to loans, borrowings and Private Sector Window (PSW).

The volume of derivative contracts is measured using the U.S. dollar equivalent notional balance. The notionalbalance represents the face value or reference value on which the calculations of payments on the derivative
instrument are determined. At March 31, 2021, the notional of interest rate swaps was $29,267 million ($24,027
million as of June 30, 2020), currency swaps $33,637 million ($18,158 million as of June 30, 2020), there were nolong or short positions of other derivatives ($1,992 million of long position and $507 million of short position as ofJune 30, 2020).
Collateral: Under almost all of its ISDA Master Agreements, IDA is not required to post collateral as long as it
maintains liquidity holdings at predetermined levels that are a proxy for a triple-A credit rating. After becoming a
rated entity, IDA has started to enter into derivative agreements with commercial counterparties in which IDA is not
required to post collateral as long as it maintains a triple-A rating. The aggregate fair value of all derivative
instruments with credit-risk related contingent features that are in a liability position as of March 31, 2021 is $313
million ($719 million —June 30, 2020). As of March 31, 2021, IDA was not required to post any collateral inaccordance with the relevant agreements.
If the credit-risk related contingent features underlying these agreements were triggered to the extent that IDA
would be required to post collateral as of March 31, 2021, the amount of collateral that would need to be posted
would be $35 million ($58 million—June 30, 2020). Subsequent triggers of contingent features would requireposting of additional collateral, up to a maximum of $313 million as of March 31, 2021 ($719 million—June 30,2020).

44

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)Amounts of gains or losses on the non-trading derivatives, by instrument type and their location on the Condensed
Statement of Income are as follows:
Table F4: Unrealized mark-to-market gains or losses on non-trading derivatives
In millions of U.S. dollars

Type of instrument

Unrealized mark-to-market gains (losses)
Three Months Ended
Nine Months Ended
March 31,
March 31,
2021
2020
2021
2020

Reported as

Interest rate swaps
Currency swaps and currency
forward contracts
Total

Unrealized mark-to-market
gains (losses) on non-trading
portfolios, net

$

775

$

(1,197)

$

1,158

$

(987)

$

(141)
634

$

275
(922)

$

(169)
989

$

355
(632)

The majority of the instruments in IDA’s investment portfolio are held for trading purposes. Within the trading
portfolio, IDA holds highly rated fixed income instruments as well as derivatives. The trading portfolio is primarily
held to ensure the availability of funds to meet future cash flow requirements and for liquidity management
purposes.
The following table provides information on the amount of gains or losses on IDA’s investment trading portfolio(derivative and non-derivative instruments), and their location on the Condensed Statement of Income:Table F5: Unrealized mark-to-market gains or losses on investment trading portfolio
In millions of U.S. dollars
Unrealized mark-to-market gains (losses)

Type of instrument

Three Months Ended
March 31,
2021
2020

Reported as

Fixed income (including related
derivatives)

Unrealized mark-to-market
gains (losses) on InvestmentTrading portfolios, net

$

20

$

152

Nine Months Ended
March 31,
2021
2020

$

104

$

171

NOTE G—TRANSACTIONS WITH AFFILIATED ORGANIZATIONSIDA transacts with affiliated organizations as a recipient of transfers and grants, administrative and derivativeintermediation services as well as through cost sharing of IBRD’s sponsored pension and other postretirement plans.
On January 25, 2021, IBRD’s Board of Governors approved a transfer of $331 million. This transfer was received on
February 1, 2021.
Transfers and Grants
Cumulative transfers and grants made to IDA as of March 31, 2021 were $19,989 million ($19,658 million—June
30, 2020). Details by transferor are as follows:
Table G1: Cumulative transfers and grants
In millions of U.S dollars
Total transfers

Beginning of the
fiscal year

Transfers during
the period

End of period

Total

$

$

$

Of which from:
IBRD
IFC

19,65815,756
3,672

331

331
-

19,98916,087
3,672

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

45

Receivables and Payables
The total amounts receivable from (payable to) affiliated organizations comprised:
Table G2: IDA’s receivables and payables with affiliated organizations
In millions of U.S. dollars

Administrative Services, net a
Derivative Transactions
Derivative assets, net
Derivative liabilities, net
PSW- Blended Finance Facility b
Pension and Other
Postretirement Benefits
Investments

IBRD
$
(203)

$

March 31, 2021
IFC
$
$

(203)

IBRD
$
(271)

June 30, 2020
IFC
$
-

Total

$

Total
(271)

26
(37)
-

6
(2)
19

32
(39)
19

74
(53)
-

3
(3)
7

77
(56)
7

574
360

483
506

574
483
866

620
370

625
632

620
625
1,002

$

$

$

$

$

a. Includes $280 million as of March 31, 2021 ($238 million-June 30, 2020) receivable from IBRD for IDA's share of investments
associated with Post-Retirement Contribution Reserve Fund (PCRF), which is a fund established to stabilize contributions madeto the pension plans.
b. Refer to Table G4: Summary of PSW-related transactions.

The receivables from (payables to) these affiliated organizations are reported in the Condensed Balance Sheet as
follows:
Receivables / Payables related to:Reported as:

Receivable for pension and other postretirement benefits

Receivable from affiliated organization

Receivables (payables) for derivative transactions

Derivative assets/liabilities, net

Payable for administrative services a

Payable to affiliated organizationa. Includes amounts receivable from IBRD for IDA’s share of investments associated with PCRF. This receivable is included in
Receivable from affiliated organization on the Condensed Balance Sheet.

Administrative Services: The payable to IBRD represents IDA’s share of joint administrative expenses andcontributions to special programs, net of other revenue jointly earned. The allocation of expenses is based upon anagreed cost sharing formula, and amounts are settled quarterly.
For the three and nine months ended March 31, 2021, IDA’s share of joint administrative expenses and contributions
to special programs totaled $444 million and $1,349 million, respectively ($434 million and $1,367 million - threeand nine months ended March 31, 2020, respectively).
Other revenue: Includes IDA’s share of other revenue jointly earned with IBRD during the three and nine months
ended March 31, 2021 totaling $66 million and $186 million, respectively ($77 million and $227 million—three andnine months ended March 31, 2020, respectively). The allocation of revenue is based upon an agreed revenue
sharing formula, and amounts are settled quarterly.
The amount of fee revenue associated with services provided to other affiliated organizations is included in Other
revenue on the Condensed Statement of Income, as follows:
Table G3: Fee revenue from affiliated organizations
In millions of U.S dollars

Fees charged to IFC
Fees charged to MIGA

Three Months Ended March 31,
2021
2020
$
20
$
21
2
2

Nine Months Ended March 31,
2021
2020
$
57
$
58
4
4

Pension and Other Post-Retirement Benefits: IBRD, along with IFC and MIGA, sponsors a defined benefit Staff
Retirement Plan and Trust, a Retired Staff Benefits Plan and Trust and a Post-Employment Benefits Plan (PEBP)
that cover substantially all of their staff members.
While IDA is not a participating entity to these benefit plans, IDA shares in the costs and reimburses IBRD for its
proportionate share of any contributions made to these plans by IBRD based on an agreed cost sharing ratio.
46

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)During the three and nine months ended March 31, 2021, IDA’s share of IBRD’s benefit costs relating to all threeplans totaled $125 million and $374 million, respectively ($91 million and $274 million—three and nine months
ended March 31, 2020, respectively).
The cost of any potential future liability arising from these plans would be shared by IBRD and IDA using theapplicable cost sharing ratio.
The receivable from IBRD represents IDA’s net share of prepaid costs for pension and other postretirement benefit
plans and PEBP assets. These will be realized over the lives of the plan participants.
Derivative transactions: These relate to currency forward contracts entered into by IDA with IBRD acting as theintermediary with the market and primarily convert donors’ expected contributions in national currencies under the
Sixteenth and Seventeenth replenishments of IDA’s resources into the five currencies of the Special Drawing Rights(SDR) basket.
Investments – Non-trading
During the fiscal year ended June 30, 2015, IDA purchased a debt security issued by IFC for a principal amount of$1,179 million, amortizing over a period of 25 years. The investment carries a fixed interest rate of 1.84% and has aweighted average maturity of 4 years. As of March 31, 2021, the principal amount due on the debt security was $472
million, and it had a fair value of $483 million. The investment is reported under Investments in the Condensed
Balance Sheet. During the three and nine months ended March 31, 2021, IDA recognized interest income of $2
million and $7 million, respectively on this debt security ($3 million and $9 million - three and nine months ended
March 31, 2020 respectively).
Private Sector Window (PSW)As part of the IDA18 replenishment, IDA’s Executive Directors approved the creation of an IDA18 IFC-MIGA
PSW to mobilize private sector investments in IDA-only countries and IDA-eligible Fragile and Conflict AffectedStates (FCS). Under the fee arrangement for the PSW, IDA will receive fee revenue for transactions executed under
this window and will reimburse IFC and MIGA for the related costs incurred in administering these transactions.
The following tables provide a summary of all PSW related transactions under which IDA has an exposure as ofMarch 31, 2021:

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)47

Table G4: Summary of PSW-related transactions
In millions of U.S. dollars
Facility

Notional

Local Currency Facility $85$

Net Asset/(Liability)
position
4

Description

Location on the Condensed
Balance Sheet

Currency swaps with IFC to support local
currency denominated loans

Derivative assets/ liabilities,net

In millions of U.S. dollars
Facility

Accumulated
Description
Provision

Exposure

MIGA Guarantee
Facility

$

189

$

22

Blended Finance
Facility

$

279

$

42

19
11

Not
applicable2

Location on the Condensed
Balance Sheet
Accumulated
Exposure
Provision
Off Balance
Other
Sheet item
liabilities

Expanding the coverage of MIGA Political
Risk Insurance (PRI) products throughshared first-loss or risk participation similar
to reinsurance
Sharing the first loss to support IFC's Small Off Balance
Loan Guarantee Program, Global Trade
Sheet item
Finance Program and Working Capital
Solutions in PSW eligible countries
Funding for IFC's PSW equity investment

Otherliabilities

Other assets

Concessional senior & sub-ordinated loans Loansto support medium term projects
outstanding

Accumulated
Provision for
Loan Losses

NOTE H—DEVELOPMENT GRANTS
A summary of changes to the amounts payable for development grants is presented below:
Table H1: Grants payable
In millions of U.S dollars
Balance, beginning of the fiscal year
Unconditional grants approved
Disbursements (including PPA grant activity)aCancellations
Translation adjustment
Balance, end of the period/ fiscal year$$

March 31, 2021
9,141
(1,650)
(152)
278
7,617

a. Project Preparation Advances (PPA)48

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)$$

June 30, 2020
12,345(2,472)
(598)
(134)
9,141

A summary of the development grant expenses is presented below:
Table H2: Grant activity
In millions of U.S dollars

Conditional Development grants disbursed a
Unconditional Development grants approved
Less:
Cancellations
Net disbursement of grant advances not yet
expensed b
Add:
Grant advances meeting expense condition cOther disbursements d
Grant Expenses$

Grants Approved

Three Months Ended March 31,
2021
2020
1,762
$
576
-

Nine Months Ended March 31,
2021
2020
$
3,221
$
1,030
-

(27)

(220)

(152)

(283)

(157)

(16)

(629)

(50)

$

52
1,630

$

1
9
350

$

122
2,562

$

1
31
729

$

3,200

$

2,253

$

7,835

$

4,111

a. Disbursements of conditional grants approved on or after July 1, 2019b. Disbursements made over the period for which the expense recognition criteria has not yet been met.
c. Prior disbursement of grant advances meeting the criteria to be expensed over the period.
d. Comprises PEF conditional grants and CAT DDOs approved prior to July 1, 2019

As of March 31, 2021, the cumulative amount of conditional grants approved but not yet expensed was $10,886
million.
NOTE I—ACCUMULATED OTHER COMPREHENSIVE INCOME
Comprehensive income consists of net income (loss) and other gains or losses affecting equity that, under U.S.
GAAP, are excluded from net income (loss). For IDA, other comprehensive income (loss) is comprised of net
income (loss), DVA on fair value option elected liabilities and currency translation adjustments on functional
currencies. These items are presented in the Condensed Statement of Comprehensive Income.
The following table presents the changes in Accumulated Other Comprehensive (Loss) Income (AOCI) balances.
Table I1: Changes in AOCI
In millions of U.S dollars

Balance, beginning of the fiscal year
Currency translation adjustments on functional currencies
DVA on Fair Value option elected liabilities
Balance, end of the period$$

Nine Months Ended March 31,
2021
2020
(3,927)$(2,408)4,577(2,880)
(49)
51
601
$
(5,237)

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)49

NOTE J— FAIR VALUE DISCLOSURES
Valuation Methods and Assumptions
As of March 31, 2021, and June 30, 2020, IDA had no financial assets or liabilities measured at fair value on a non–recurring basis.
Due from Banks
The carrying amount of unrestricted and restricted cash is considered a reasonable estimate of the fair value of these
positions.
Loans and Loan commitments
There were no loans carried at fair value as of March 31, 2021 and June 30, 2020. For disclosure purposes, IDA’sloans and loans commitments would be classified as Level 3 within the fair value hierarchy.
Summarized below are the techniques applied in determining the fair values of IDA’s financial instruments.
Investment securities
Where available, quoted market prices are used to determine the fair value of trading securities. Examples include
most government and agency securities.
For instruments for which market quotations are not available, fair values are determined using model-based
valuation techniques, whether internally-generated or vendor-supplied, that include the standard discounted cash
flow method using market observable inputs such as yield curves, credit spreads, and conditional prepayment rates.
Where applicable, unobservable inputs such as conditional prepayment rates, probability of default, and loss severity
are used.
Unless quoted prices are available, time deposits are reported at face value, which approximates fair value, as they
are short term in nature.
Securities purchased under resale agreements, securities sold under repurchase agreements, and securities lent
under securities lending agreements
These securities are of a short-term nature and are reported at face value, which approximates fair value.
Borrowings
The fair value of IDA’s borrowings is calculated using a discounted cash flow method which relies on market
observable inputs such as yield curves, foreign exchange rates, basis spreads and funding spreads.
Derivative instruments
Derivative contracts include currency forward contracts, TBA, swaptions, exchange traded options and futurecontracts, currency swaps and interest rate swaps.
Where available, quoted market prices are used to determine the fair value of trading securities. Examples include
exchange traded options and futures contracts.
For instruments for which market quotations are not available, fair values are determined using model-based
valuation techniques, whether internally-generated or vendor-supplied, that include the standard discounted cash
flow method using market observable inputs such as yield curves, foreign exchange rates, credit spreads, basis
spreads, funding spreads and constant prepayment spreads. Where applicable, unobservable inputs such as constantprepayment rates, probability of default, and loss severity are used.
Valuation adjustments on fair value option elected liabilities
The DVA on fair value option elected liabilities (market borrowings) is being measured by revaluing each liability
to determine the changes in fair value of that liability arising from changes in IDA’s cost of funding relative to
LIBOR.

50

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

The table below presents IDA’s estimates of fair value of its financial assets and liabilities along with theirrespective carrying amounts.
Table J1: Fair value and carrying amounts of financial assets and liabilities
In millions of U.S dollars

AssetsDue from banks
Investments (including securities transferred under
repurchase or securities lending agreements)
Net loans outstanding
Derivative assets, net
Liabilities
Borrowings
Market borrowings
Concessional partner loans
Securities sold under repurchase agreements, securities
lent under securities lending agreements, and payable
for cash collateral received
Derivative liabilities, net

March 31, 2021
Carrying Value
Fair Value

June 30, 2020
Carrying Value
Fair Value

$

$

492

$

492

674

$

674

36,302
171,916511

36,302
153,926511

34,670160,961
136

34,670149,597
136

14,915
7,735

14,915
9,402

12,131
7,635

12,131
10,031

315

315

108
590

108
590

As of March 31, 2021, IDA’s signed loan commitments were $57.9 billion ($49.6 billion – June 30, 2020) and had anegative fair value of $(7.2) billion ($(5.1) billion – June 30, 2020).

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

51

The following tables present IDA’s fair value hierarchy for assets and liabilities measured at fair value on arecurring basis.
Table J2: Fair value hierarchy of IDA’s assets and liabilities
In millions of U.S. dollars
Fair Value Measurements on a Recurring Basis
As of March 31, 2021
Level 1
Level 2
Level 3
Total
Assets:Investments—Trading
Government and agency obligations
Time deposits
ABS
Total Investments—Trading
Investments—Non-trading (at fair value)
Total Investments
Derivative assets:
Currency swaps and currency forward contracts aInterest rate swaps
Other b

$

$
$

$

$

9,696
1,051
10,747
10,747

$

-

$

$
$

$

15,252
9,723
97
25,072483
25,555

$

690
509
1,199

$

$
$

$

-

$

-

$

Less:
Amounts subject to legally enforceable master netting agreements c
Cash collateral received
Derivative assets, net
Liabilities:
Market Borrowings
Securities sold under repurchase agreements andsecurities lent under security lending agreements e
Derivative liabilities:
Currency swaps and currency forward contracts
Interest rate swaps
Other b

$

$

690
509
1,199

$

615
73
511

$

-

$

14,915$-$

14,915

$

-

$

-

$

-

$

-

$

-

$

576
343
919

$

-

$

$

576
343
919

$

604
315

$

$

$

Less:
Amounts subject to legally enforceable master netting agreements d
Derivative liabilities, net
a. Includes structured swaps.
b. These include swaptions, exchange traded options, futures contracts and TBA securities.
c. Includes $14 million CVA.
d. Includes $3 million DVA.
e. Excludes amount payable for cash collateral received $73 million.

52$

24,948
10,77497
35,819483
36,302

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)Table J2.1
In millions of U.S. dollars
Fair Value Measurements on a Recurring Basis
As of June 30, 2020
Level 1
Level 2
Level 3
Total
Assets:Investments—Trading
Government and agency obligations
Time deposits
ABS
Total Investments—Trading
Investments—Non-trading (at fair value)
Total Investments
Derivative assets:
Currency swaps and currency forward contracts aInterest rate swaps
Other b

$

$
$

$

$

9,711
2,458
12,16912,169

$

-

$

$
$

$

14,4875,940
1,449
21,876625
22,501

$

713
159
3
875

$

$
$

$

-

$

-

$

Less:
Amounts subject to legally enforceable master netting
agreements c
Cash collateral received
Derivative assets, net
Liabilities:
Market Borrowings
Securities sold under repurchase agreements andsecurities lent under security lending agreements e
Derivative liabilities:
Currency swaps and currency forward contracts
Interest rate swaps$$

24,1988,398
1,449
34,045625
34,670

$

713
159
3
875

$

738
1
136

$

-

$

12,131$-$

12,131

$

-

$

107

$

-

$

107

$

-

$

264
1,097

$

-

$

264
1,097

Other b
$

-

$

1
1,362

$

-

$

1
1,362

$

772
590

Less:
Amounts subject to legally enforceable master netting agreements d
Derivative liabilities, net
a. Includes structured swaps.
b. These include swaptions, exchange traded options, futures contracts and TBA securities.
c. Includes $7 million CVA.
d. Includes $41 million DVA.
e. Excludes amount payable for cash collateral received $2 million.

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

53

Presented below is the difference between the aggregate fair value and aggregate contractual principal balance of
non-trading securities in the investment portfolio:
Table J3: Investment portfolio-Non-trading securities
In millions of U.S dollars
March 31, 2021
June 30, 2020$$

Fair value
483
625

Principal amount due$$

Difference
472
597

$
$

11
28

Presented below is the difference between the aggregate fair value and aggregate contractual principal balance ofmarket borrowings:
Table J4: Market Borrowings fair value and contractual principal balance
In millions of U.S. dollars

March 31, 2021
June 30, 2020$$

Fair Value
14,915
12,131

Principal Due Upon
Maturity$
15,061$
11,952Difference
$
$

(146)
179

Valuation adjustments on fair value option elected liabilities
During the nine months ended March 31, 2021, IDA recorded unrealized mark-to-market losses of $49 million in
Other Comprehensive Income, in relation to the changes in its own credit (DVA) on fair value option electedliabilities (market borrowings), during that period ($51 million unrealized mark-to-market gains – nine months
ended March 31, 2020).
As of March 31, 2021, IDA’s Condensed Balance Sheet included a DVA of $41 million loss ($8 million gain—June
30, 2020) in Accumulated other comprehensive income, associated with the changes in IDA’s own credit for its
market borrowings.

54

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)

The following table reflects the components of the unrealized mark-to-market gains or losses on IDA’s trading andnon-trading portfolios, net.
Table J5: Unrealized Mark-to-Market Gains (Losses) on Trading and Non-Trading Portfolios, Net
In millions of U.S. dollars

Investments, Trading—Note F
Non-trading portfolios, net
Asset/liability management—Note F
Investment portfolio—Note C
Other b
Total non-trading portfolios, net

Three Months Ended March 31, 2021
Unrealized
gains (losses)
Realized
excluding
Unrealized
gains
realized
gains(losses)amounts a(losses)$
153 $(133) $
20

$

-

$

957
(10)
7
954

$

957
(10)
7
954

Nine Months Ended March 31, 2021
Unrealized
gains (losses)
Realized
excluding
Unrealized
gains
realized
gains(losses)amounts a(losses)
$
142 $
(38)
$
104

$

-

$

1,343
(14)
20
1,349

$

1,343
(14)
20
1,349

Table J5.1:
In millions of U.S. dollars

Investments, Trading, net—Note F
Non-trading portfolios, net
Asset/liability management—Note F
Investment portfolio—Note C
Other b
Total non-trading portfolios, net

Three Months Ended March 31, 2020
Unrealized
gains (losses)
Realized
excluding
Unrealized
gains
realized
gains(losses)amounts a(losses)$(58) $
210 $
152

$

-

$

(1,002)
19
(4)
(987)

$

(1,002)
19
(4)
(987)

Nine Months Ended March 31, 2020
Unrealized
gains (losses)
Realized
excluding
Unrealized
gains
realized
gains(losses)amounts a(losses)
$
73 $
98
$
171

$

-

$

(679)
22
(7)
(664)

$

(679)
22
(7)
(664)

a. Adjusted to exclude amounts reclassified to realized gains/losses.
b. Other comprise mark to market gains or losses on the borrowing and loan portfolios and on PSW.

NOTE K—CONTINGENCIESIn light of the COVID-19 pandemic, IDA faces additional credit, market and operational risks. The duration of the
COVID-19 pandemic remains difficult to predict at this time, as are the extent and efficacy of economic
interventions by governments and central banks. The length and severity of the pandemic and the related
developments, as well as the impact on the financial results and position of IDA in future periods cannot bereasonably estimated at this point in time and continue to evolve. IDA continues to monitor the developments and to
manage the risks associated with its various portfolios.
From time to time, IDA may be named as a defendant or co-defendant in legal actions on different grounds invarious jurisdictions. The outcome of any existing legal action, in which IDA has been named as a defendant or codefendant, as of and for the nine months ended March 31, 2021, is not expected to have a material adverse effect on
IDA's financial position, results of operations or cash flows.

IDA Condensed Quarterly Financial Statements: March 31, 2021 (Unaudited)55

INDEPENDENT AUDITORS’ REVIEW REPORT
Independent Auditors’ Review Report

Deloitte & Touche LLP
7900 Tysons One Place
Suite 800
McLean, VA 22102
USA
Tel: +1 703 251 1000
Fax: +1 703 251 3400
www.deloitte.com

INDEPENDENT AUDITORS’ REVIEW REPORT
President and Board of Executive Directors
International Development Association:
We have reviewed the accompanying condensed balance sheet of the International Development Association (“IDA”) as of March
31, 2021, and the related condensed statements of income and comprehensive income for the three-month and nine-month
periods ended March 31, 2021 and 2020, and of changes in accumulated deficit and cash flows for the nine-month periods ended
March 31, 2021 and 2020 (the "interim financial information").
Management’s Responsibility for the Interim Financial Information
IDA’s management is responsible for the preparation and fair presentation of the interim financial information in accordance withaccounting principles generally accepted in the United States of America; this responsibility includes the design, implementation,and maintenance of internal control sufficient to provide a reasonable basis for the preparation and fair presentation of interim
financial information in accordance with accounting principles generally accepted in the United States of America.
Auditors’ Responsibility
Our responsibility is to conduct our reviews in accordance with auditing standards generally accepted in the United States ofAmerica applicable to reviews of interim financial information. A review of interim financial information consists principally of
applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantiallyless in scope than an audit conducted in accordance with auditing standards generally accepted in the United States of America,
the objective of which is the expression of an opinion regarding the financial information. Accordingly, we do not express such an
opinion.
Conclusion
Based on our reviews, we are not aware of any material modifications that should be made to the interim financial informationreferred to above for it to be in accordance with accounting principles generally accepted in the United States of America.
Report on Condensed Balance Sheet as of June 30, 2020
We have previously audited, in accordance with auditing standards generally accepted in the United States of America, the balance
sheet of IDA as of June 30, 2020, and the related statements of income, comprehensive income, changes in accumulated deficit,
and cash flows for the year then ended (not presented herein); and we expressed an unmodified audit opinion on those audited
financial statements in our report dated August 7, 2020. In our opinion, the accompanying condensed balance sheet of IDA as ofJune 30, 2020, is consistent, in all material respects, with the audited financial statements from which it has been derived.

May 14, 2021

52