International Development Association

Management’s Discussion & Analysis
andCondensed Quarterly Financial Statements
September 30, 2023
(Unaudited)Management’s Discussion and Analysis

Contents
Section I: Executive Summary
Section II: Overview

Section III: IDA's Financial Resources
Section IV: Financial Results
Section V: Risk Management
Section VI: Governance

Summary of Financial Results
IDA Replenishment
Twentieth Replenishment of Resources (IDA20)IDA Crisis Facility
Financial Business Model
Basis of Reporting
IDA20 Funding
Allocation of IDA20 Resources
Financial Results and Portfolio Performance
Risk GovernanceManagement of IDA's Risks
Senior Management Changes

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TablesTable 1: Selected Financial Data
Table 2: Cumulative Net Commitments since July 1, 2022
Table 3: Condensed Statements of Income
Table 4: Condensed Balance Sheets
Table 5: Net Commitments of Loans and Guarantees by Region
Table 6: Net Commitments of Grants by Region
Table 7: Gross Disbursements of Loans and Grants by Region
Table 8: Revenue and Loan Balances by Product Category
Table 9: Net Non-Interest Expense
Table 10: Other (Expenses) Revenue, net
Table 11: Unrealized Mark-to-Market gains (losses) on non-trading portfolios, net
Table 12: Deployable Strategic Capital Ratio
Table 13: Commercial Credit Exposure, Net of Collateral Held, by Counterparty Rating

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13
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14
14
17
17
18
20
22

FiguresFigure 1: Changes in Equity
Figure 2: Net Loans Outstanding Activity
Figure 3: Net Loans Outstanding
Figure 4: Net Investment Portfolio
Figure 5: Investment Revenue, net - YTD
Figure 6: Borrowing Portfolio
Figure 7: Borrowing expenses, net - YTD
Figure 8: Country Exposures as of September 30, 2023

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Management’s Discussion and Analysis

Section I: Executive Summary

Section I: Executive Summary
This Management’s Discussion & Analysis (MD&A) reflects the results of the International Development
Association’s (IDA) financial performance for the three months ended September 30, 2023 (FY24 YTD). This
document should be read in conjunction with IDA’s financial statements and MD&A issued for the fiscal year ended
June 30, 2023 (FY23). IDA undertakes no obligation to update any forward-looking statements.

Table 1: Selected Financial Data
In millions of U.S. dollars, except ratios which are in percentages
As of and for the
fiscal year ended
June 30,

As of and for the three months ended
September 30,
2023
Lending Highlights (Section IV)
Loans, Grants and Guarantees
Net commitments a
Gross disbursements a
Net disbursements a
Balance Sheet (Section IV)
Total assets
Net investment portfolio b
Net loans outstanding
Borrowing portfolio c
Total equity
Income Statement (Section IV)
Interest revenue, net of borrowing expenses
Transfers from affiliated organizations and others
Development grants
Net income (loss)
Non-GAAP Measures
Adjusted Net Income (Section IV)
Deployable Strategic Capital Ratio (Section V)

$

2022

5,722

$

3,644
1,851

2023

6,326

$

3,988
2,311

34,24527,71819,968$226,593
30,706
186,144
36,248
184,749$

214,935
38,976
169,266
35,740173,326$

227,482
30,672
187,669
35,393
185,782

$

622
—
(776)
62

$

529
—
(1,058)
(535)

$

2,367
117
(3,946)(3,262)$

181$
23.4 %

87$
26.1 %

193
24.1 %

a. Commitments that have been approved by the Executive Directors (referred to as “the Board” in this document) and are net offull cancellations and terminations relating to commitments approved in the same fiscal year. Commitments and disbursements
exclude IDA-IFC-MIGA Private Sector Window (PSW) activities.
b. For the composition of the net investment portfolio, see Notes to the Condensed Quarterly Financial Statements, Note C –Investments – Table C2.
c. Includes associated derivatives. For the composition of the Borrowing portfolio, see Notes to the Condensed Quarterly Financial
Statements, Note E – Borrowings.

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IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section I: Executive Summary

IDA, an international organization owned by its 174 member countries, is one of the five institutions of the WorldBank Group (WBG1). Each WBG organization is legally and financially independent from IDA, with separate assets
and liabilities. IDA is not liable for the obligations of the other institutions.
IDA is rated triple-A by the major rating agencies and has been providing financing and knowledge services to manyof the world’s developing countries for 63 years. With its many years of experience and its depth of knowledge ininternational development, IDA plays a key role in achieving the WBG’s goal of helping countries achieve better
development outcomes. IDA provides loans, grants, guarantees, and other financial products to the poorest and mostvulnerable countries to help meet their development needs, and technical assistance and policy advice by leveraging
its experience and expertise. 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 in reducing poverty and inequality, achieve improvements
in growth, job creation, governance, the environment, climate adaptation, mitigation and resilience, human capital,
infrastructure and debt transparency, among others. To meet its development goals, the WBG supports client
countries' efforts to implement programs to improve growth and development outcomes. Further, new and ongoingchallenges continue to influence the global outlook. These include high inflation, the rise in food insecurity, growing
inequality, global fragility, pandemic risk, Russia's invasion of Ukraine and other geopolitical events, rising debt,
climate change, and macroeconomic imbalances. In response, IDA continues to work with partners at global andcountry levels to support its borrowing countries in addressing the impact of these multiple crises, to enhance
resilience, and lay the groundwork for rebuilding better. To further enhance these efforts, the Board andManagement have been working on an Evolution Roadmap for the WBG to better address the scale of development
challenges. As part of this evolution, in October 2023, the Board of Governors endorsed a new vision: to create aworld free of poverty on a livable planet, a new mission: to end extreme poverty and boost shared prosperity on alivable planet, and initiatives to increase impact, modernize the approach to delivery, and increase financing
capacity.

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). The World Bank consists of IBRD and IDA.

IDA Management's Discussion and Analysis: September 30, 2023

3

Management’s Discussion and Analysis

Section I: Executive Summary

Summary of Financial Results
Net Income and Adjusted Net Income

In millions of U.S. dollars

Net Income: IDA reported net income of $62 million
in FY24 YTD, compared to a net loss of $535 million
for the three months ended September 30, 2022
(FY23 YTD). The increase in net income wasprimarily driven by the increase in unrealized mark tomarket gains on the non-trading portfolios and adecrease in development grant expenses, partially
offset by the decrease in non-functional currencytranslation gains. See Section IV: Financial Results.
Adjusted Net Income: IDA's adjusted net income
was $181 million in FY24 YTD compared to $87
million in FY23 YTD. The increase was primarily
due to higher net interest revenue on investments andloans, partially offset by higher borrowing expenses.
See Section IV: Financial Results.

YTD Adjusted Net Income (Loss)YTD Net Income (Loss)
4,000
2,000
0
(2,000)(4,000)
FY20

FY21

FY22

FY23

FY24

Loans and grants
IDA's net commitments in FY24 YTD were $5.7 billion, $0.6 billion lower than FY23 YTD. Out of the total net
commitments, $3.6 billion were loan commitments and $2.1 billion were grant commitments. FY23 YTD net loan
commitments included $1.2 billion approved under the IDA19 envelope due to the extension of the closing date forthe approval of IDA19 operations.
IDA’s net loans outstanding decreased by $1.6 billion to $186.1 billion as of September 30, 2023, from $187.7
billion as of June 30, 2023. The decrease was primarily due to currency translation losses as the Special Drawing
Rights (SDR) depreciated against the U.S. dollar during the period. See Section IV: Financial Results.
Development grant expenses were $0.8 billion in FY24 YTD compared to $1.1 billion in FY23 YTD due to lower
disbursements of conditional grants in FY24 YTD.
In billions of U.S. dollars
YTD Net Commitments ᵃ
YTD Gross Disbursements
YTD Net Disbursements
10
8
6
4
2
0

Net Loans outstanding

200

10
8
6
4
2
0

150
100
50
0
FY20 FY21 FY22 FY23 FY24

Jun 20 Jun 21 Jun 22 Jun 23 Sep 23

a. Includes loans, grants and guarantees.

4

YTD Net Grant Commitments
YTD Grant ExpenseYTD Net Grant Disbursements

250

IDA Management's Discussion and Analysis: September 30, 2023

FY20 FY21 FY22 FY23 FY24

Management’s Discussion and Analysis

Section I: Executive Summary

Net Investment Portfolio

In billions of U.S. dollars

As of September 30, 2023, the net investment
portfolio was $30.7 billion, and remained stablecompared to June 30, 2023. See Section IV: Financial
Results. The primary objective of IDA's investment
strategy is principal protection. As of September 30,
2023, 76% of IDA's investment portfolio was held in
instruments rated AA or above (78% as of June 30,2023) (Table 13).

Net Investment Portfolio
50
40
30
20
10
0
Jun 20Jun 21

Jun 22Jun 23

Sep 23

Jun 23

Sep 23

Jun 23

Sep 23

Borrowing Portfolio
Market borrowings at fair value: As of September 30,
2023, the market borrowings carried at fair value andthe related derivatives were $20.8 billion, an increaseof $1.2 billion from June 30, 2023 primarily due to
net issuances during the period.
Market borrowings at amortized cost: As of
September 30, 2023, the market borrowings carried atamortized cost were $8.4 billion, a decrease of $0.2
billion from June 30, 2023.
Concessional Partner Loans at amortized cost: As of
September 30, 2023, total borrowings from members- Concessional Partner Loans (CPL) were $7.1
billion, a marginal decrease of $0.1 billion from
June 30, 2023.

In billions of U.S. dollars
Borrowing Portfolio
50
40
30
20
10
0
Jun 20Jun 21

Jun 22See Section IV: Financial Results.

Equity and Capital Adequacy

In billions of U.S. dollars

As of September 30, 2023, IDA's equity was $184.7
billion, a decrease of $1.1 billion from June 30, 2023.
The decrease was primarily due to currencytranslation losses as the SDR depreciated against the
U.S. dollar during the period. See Section IV:
Financial Results.

Equity
200
150
100
50
0
Jun 20Jun 21

Jun 22

Ratio in percentages

The Deployable Strategic Capital (DSC) ratio, IDA's
main capital adequacy measure, was 23.4% as of
September 30, 2023, above the zero percent policy
minimum and a decrease of 0.7 percentage points
from 24.1% as of June 30, 2023. The decrease wasmainly due to the decrease in total resources
available. See Section V: Risk Management.

Deployable Strategic Capital Ratio
45%
30%
15%
0%
Jun 20Jun 21

Jun 22Jun 23

Sep 23

Policy Minimum Ratio = 0%

IDA Management's Discussion and Analysis: September 30, 2023

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Management’s Discussion and Analysis

Section II: Overview

Section II: Overview
IDA Replenishment
Generally, every three years, representatives of IDA’s members2 meet to assess IDA’s financial capacity and the
medium-term demand for new IDA financing. Members decide on the policy framework, agree on the amount offinancing to be made available for the replenishment period, and commit to additional contributions of equity thatare 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.

Twentieth Replenishment of Resources (IDA20)
IDA’s Twentieth Replenishment (IDA20), with the replenishment period of FY23 through FY25, commenced on
July 1, 2022, with a financing envelope of $93.0 billion3, including $11.0 billion of IDA19 carry over, supported by$23.5 billion of member contributions. IDA20 recognizes the need to help address the profound challenges faced by
IDA countries. IDA20 reaffirms the international community’s commitment to scale up support to enable IDA
countries to respond to the effects of the coronavirus disease (COVID-19) pandemic crisis, recoup their development
losses, and resume progress toward the 2030 Sustainable Development goals. IDA20 supports the world’s poorestand most vulnerable countries to emerge on a development path in line with the Green, Resilient and Inclusive
Development (GRID) framework. IDA20 builds on the IDA19 special themes, with the continuation of climatechange, fragility, conflict, and violence (FCV), gender and development, jobs and economic transformation and theintroduction of human capital as a special theme. In addition, IDA20’s policy package incorporates four crosscutting
issues: crisis preparedness (introduced in IDA20), governance and institutions, debt, and technology.

IDA Crisis Facility
On July 5, 2023, IDA's Board of Governors adopted a Resolution to establish a Crisis Facility to scale up support for
the world’s poorest countries to address worsening development challenges due to the overlapping global crises,
particularly food insecurity and extreme climate events. The Crisis Facility has two objectives: i) to provide
additional resources to IDA countries affected by Russia’s invasion of Ukraine at a time of compounding,overlapping global crises; and ii) to provide a mechanism for pooling and leveraging contributions to support
Ukraine, and to neighboring Moldova. This facility will be supported by member contributions and enhance IDA's
financing capacity in addition to 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. As a result of the strong support from member countries,
IDA has built up a substantial equity base of $184.7 billion as of September 30, 2023. Since FY18, IDA has shiftedto a hybrid financial model by introducing market debt into its business model. By prudently leveraging its equity
and blending market debt with equity contributions from members, IDA has increased its financial efficiency, andscaled up its financing to support the escalating demand for its resources to deliver on the following priorities:• 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.
Currently, IDA's non-concessional and concessional lending, including grants, is primarily financed by IDA’sequity. As IDA’s funding program expands under the hybrid financing model, a larger portion of lending will befunded by market debt, together with member countries’ contributions (equity). Funds not deployed for lending are
maintained in IDA’s investment portfolio to supply liquidity for its operations.

2

IDA’s members are owners and hold voting rights in IDA. Members do not, however, hold shares in IDA and are therefore notreferred to as shareholders. Payments for subscriptions and contributions from members increase IDA’s paid-in equity and arefinancially equivalent to paid-in capital in multilateral development organizations that issue shares.
3
U.S. dollar amounts are based on IDA20 reference rate of USD/SDR 1.42934. The U.S. dollar amounts are provided for reporting
purposed only, as IDA’s balance sheet is predominantly managed in SDR.

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IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section II: Overview

Basis of Reporting
IDA prepares its financial statements in conformity with accounting principles generally accepted in the UnitedStates of America (U.S. GAAP). IDA’s reporting currency is the U.S. dollar. IDA’s functional currencies are theSDR and its component currencies of the U.S. dollar, euro, Japanese yen, pound sterling and Chinese renminbi.
Management uses net income as the basis for deriving adjusted net income, as discussed in Section IV: Financial
Results.

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
the adjustments, see IDA’s MD&A for the fiscal year ended June 30, 2023, Section IV: Financial Results.

IDA Management's Discussion and Analysis: September 30, 2023

7

Management’s Discussion and Analysis

Section III: IDA's Financial Resources

Section III: IDA’s Financial Resources
IDA20 Funding
IDA’s financing resource envelope available for lending and grant commitments is based on the long-term outlookof IDA’s financial sustainability. This takes into account the amount of member contributions and theconcessionality of the proposed financing to borrowers, market conditions, and capital adequacy requirements.

Allocation of IDA20 Resources
IDA financing is provided in the form of loans, grants, and guarantees. Most of IDA’s resources are allocated toeligible members through IDA Country Allocations that provide unearmarked support. The allocation framework is
agreed for each replenishment cycle. 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, and complemented by the FCV envelope. The rest of IDA resources are provided through five IDA
Windows dedicated to addressing specific development priorities, and an Arrears Clearance framework that provides
exceptional support for countries to fully reengage with the World Bank.
IDA responds to specific needs of its members through the following five IDA Windows:

Eligibility and the percentage of allocation of grants for IDA-only countries are based on an assessment of thecountry’s risk of debt distress, where countries, including IDA-only Small States, with high risk of debt distress, orin debt distress, receive their IDA assistance in grants. IDA-only Small States at moderate risk of debt distresscontinue to receive half of their IDA20 allocation in grants and half in loans. Gap and Blend countries are only
eligible for grant financing through the Window for Host Communities and Refugees, if applicable.
As part of IDA’s balance sheet optimization measures, two new financing terms were introduced in IDA20 whichcarry no interest or service charges: a) Concessional Shorter-Maturity Loans (SMLs); and b) 50-year loans. In
addition, starting from IDA20, borrowers are allowed to convert their concessional borrowing into one of the SDR
component currencies or non-SDR local currency terms, subject to market availability.

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IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section III: IDA's Financial Resources

Table 2: Cumulative Net Commitments since July 1, 2022
In millions of U.S. dollars
As of September 30, 2023
Concessional financing
IDA Country Allocations
IDA Concessional Windows
Regional Window
Window for Host Communities and Refugees
Crisis Response Window
Scale-up Window – Shorter Maturity Loans
Non-concessional financing – Scale-up Window
Cumulative Net Commitments under IDA20
IDA19 Commitments approved in July 2022
IDA Country Allocations
Total Cumulative Net Commitments a

Loans andGuarantees

GrantsTotal$

21,271 $5,467 $

26,738

$

1,419
33
452
3,830
2,328
29,333 $

2,314
437
1,216
—
—
9,434 $

3,733
470
1,668
3,830
2,328
38,767$$1,200 $
30,533 $— $9,434 $

1,200
39,967a. Commitments are net of full cancellations and terminations approved in the same fiscal year. Commitments exclude IDA-IFCMIGA Private Sector Window (PSW) activities.

Private Sector Window
The IDA-IFC-MIGA Private Sector Window was created under IDA18 to mobilize private sector investment in
IDA-only countries and IDA-eligible Fragile and Conflict-affected Situations. Under IDA20, $2.5 billion has been
allocated to PSW, bringing the cumulative total allocation to $5.5 billion. As of September 30, 2023, $1.4 billion
had been utilized out of a combined total of $4.0 billion committed in IDA18 through IDA20.

IDA Management's Discussion and Analysis: September 30, 2023

9

Management’s Discussion and Analysis

Section IV: Financial Results

Section IV: Financial Results
Financial Results and Portfolio Performance
Net Income
IDA’s net income was $62 million in FY24 YTD compared with a net loss of $535 million in FY23 YTD (Table 3).
The increase in net income was primarily driven by:• An increase of $629 million in unrealized mark-to-market gains on non-trading portfolios. The increase
was mainly driven by higher mark-to-market gains from the derivatives held for the Capital Value
Protection Program (CVP), as the increase in U.S. dollar and EUR interest rates for long tenors in FY24
YTD was more prominent compared to FY23 YTD (Section V - Risk Management);• A decrease of $282 million in development grant expenses due to lower disbursements of conditional
grants in FY24 YTD compared to FY23 YTD; partially offset by• A decrease of $462 million in non-functional currency translation gains as the depreciation of certain nonfunctional currencies against the U.S. dollar was lower in FY24 YTD compared to FY23 YTD.

Adjusted Net Income
IDA’s adjusted net income was $181 million in FY24 YTD compared with $87 million in FY23 YTD (Table 3). The
increase was primarily driven by:• An increase of $158 million in net interest revenue on investments as a result of higher interest rates in
FY24 YTD compared to FY23 YTD;
• An increase of $116 million in net interest revenue from loans due to the higher average balance and theincrease in interest rates on non-concessional loans in FY24 YTD compared to FY23 YTD; partially offset
by• An increase of $190 million in borrowing expenses, excluding amortization of discount on CPL, as a resultof the increase in interest rates in FY24 YTD compared to FY23 YTD.

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IDA Management's Discussion and Analysis: September 30, 2023

Section IV: Financial Results

Management’s Discussion and Analysis
Table 3: Condensed Statements of Income
In millions of U.S. dollars

For the three months ended September 30,
Interest Revenue
Loans, net a
Investments, net
Asset-liability management derivatives, net
Borrowing expenses, net
Interest revenue, net of borrowing expenses
Provision for losses on loans and other exposures
Other (expenses) revenue, net (Table 10)
Net non-interest expenses (Table 9)Non-functional currency translation adjustment gains, net
Unrealized mark-to-market gains (losses) on investments-trading portfolio, net b
Unrealized mark-to-market gains on non-trading portfolios, net
Development grants
Net Income (Loss)
Adjustments to reconcile net income (loss) to adjusted net income:
Activities directly funded by member contributions
Non-functional currency translation adjustment gains, net
Unrealized mark-to-market (gains) losses on non-trading portfolios, net c
Pension and other adjustments
Adjusted Net Income

2023
$

$

$
$

$

2022

632 $
516
315
157
14
2
(339)
(146)
622 $
529
(85)
(52)
(16)
12
(368)
(365)
17
479
12
(107)
656
27
(776) (1,058)
62 $ (535)

Negative
impactPositive
impact
116
158
12

(193)
93
(33)
(28)
(3)
(462)
119
629
282
597

824 $ 1,078
(254)
(17)
(479)
(650)
14 (664)
(38)
9
(47)
181 $
87

462

94

a. Includes interest rate swap income or expenses from loan related derivatives.
b. Includes IDA’s share of returns from Post-Employment Benefit Plan (PEBP) and Post-Retirement Contribution Reserve Fund(PCRF) assets – $10 million negative return (FY23 YTD – $36 million of negative return).
c. Excludes $6 million of gains from revenue-related forward currency contracts (FY23 YTD – $41 million of gains).
Table 4: Condensed Balance Sheets
In millions of U.S. dollars
As ofAssets

September 30, 2023

June 30, 2023

Decrease Increase

689

(160)

31,75331,822(69)

Net loans outstanding

186,144

187,669 (1,525)

Derivative assets, net

625

364

7,542

6,938

Due from banks$

Investments

Other assets
Total assets
Liabilities
Borrowings
Derivative liabilities, net
Other liabilities
EquityTotal liabilities and equity

529 $

$

226,593 $

227,482$

33,353 $978
7,513
184,749
226,593 $

32,5671,244
7,889
185,782
227,482

$

261
604
(889)
786
(266)
(376)
(1,033)(889)

IDA Management's Discussion and Analysis: September 30, 2023

11

Management’s Discussion and Analysis

Section IV: Financial Results

The main drivers for the movements in the Balance Sheets as of September 30, 2023 are as follows:•A decrease in net loans outstanding due to currency translation losses, partially offset by net disbursements
during the period;
An increase in other assets due to higher grant advances;
An increase in borrowings due to net new issuances during the period;
A decrease in other liabilities mainly driven by decrease in securities sold under repurchase agreements anddevelopment grants payable;
A decrease in equity due to currency translation losses as the SDR depreciated against the U.S. dollar
during the period.

•
•
•
•

EquitySee Figure 1 below for the change in IDA’s equity during FY24 YTD.
Figure 1: Changes in Equity
In billions of U.S. dollars
200

185.8

0.6

0.1

184.7
(1.8)

100

0
Equity as of June30, 2023

Nonnegotiable,
non-interest
bearing demandobligations

Accumulated
deficitAccumulated othercomprehensive
loss

Equity as of
September 30,
2023

Results from Financing Activities
Loan Portfolio and Grant Activity
As of September 30, 2023, net loans outstanding were $186.1 billion, $1.6 billion lower compared with June 30,
2023. The decrease was mainly due to currency translation losses of $2.1 billion, consistent with the 1.1%
depreciation of the SDR against the U.S. dollar during the period, partially offset by net disbursements of $595
million during the period.
As of September 30, 2023, 83% of IDA’s loans outstanding were denominated in SDR. For the regional presentationof loans outstanding, see Notes to the Condensed Quarterly Financial Statements for the period ended September 30,
2023, Note D – Loans and Other Exposures – Table D5.

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IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section IV: Financial Results

Figure 2: Net Loans Outstanding Activity

Figure 3: Net Loans Outstanding

In billions of U.S. dollars

In billions of U.S. dollars

200

187.7

0.6

—

186.1

200

187.7

186.1

Jun 23

Sep 23

174.5

(2.2)

150
150

100
50
100
Net Loans
Net loan
Accumulated Translation
outstanding disbursements provision for and otheras of Juneloan losses adjustments
30, 2023

Net Loansoutstanding
as of
September
30, 2023

0
Jun 22

During FY24 YTD, net loan commitments were lower by $0.6 billion compared with FY23 YTD. There were no
guarantee commitments in either FY24 YTD or FY23 YTD. FY23 YTD net loan commitments included $1.2 billion
approved under the IDA19 envelope due to the extension of the closing date for the approval of IDA19 operations.
Table 5: Net Commitments of Loans and Guarantees by Region
In millions of U.S. dollars
For the three months ended September 30,
Eastern and Southern Africa
Western and Central Africa
Europe and Central Asia
Latin America and the Caribbean
South Asia
Total

$

$

2023

% of total

500
1,937
7
30
1,098
3,572

14 %
54
*
1
31
100 %

2023
1,485
427
26
50
12
150
—
2,150

% of total
69 %
20
1
2
1
7
—
100 %

$

$

2022

% of total

1,335
1,998
30
51
804
4,218

32 %
47
1
1
19
100 %

2022
1,728
225
—
—
—
150
5
2,108

% of total
82 %
11
—
—
—
7
*
100 %

Variance
$

(835)
(61)
(23)
(21)
294
(646)

$

* Indicates percentage less than 0.5%.
Table 6: Net Commitments of Grants by Region
In millions of U.S. dollars
For the three months ended September 30,
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

$

$

$

$

$

$

Variance
(243)
202
26
50
12
—
(5)
42

* Indicates percentage less than 0.5%.

IDA’s loans generally disburse within five to ten years for Investment Project Financing (IPF) and one to three years
for Development Policy Financing (DPF). Therefore, each year’s disbursements also include amounts relating tocommitments made in earlier years (Table 7).
Gross disbursements were 9% lower in FY24 YTD compared with the same period in FY23. The decrease wasmainly due to lower DPF disbursements in FY24 YTD.

IDA Management's Discussion and Analysis: September 30, 2023

13

Section IV: Financial Results

Management’s Discussion and Analysis

Table 7: Gross Disbursements of Loans and Grants by Region
In millions of U.S. dollars

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

2023
Grants b

Loans aFor the three months ended September 30,
$

$

755 $
746
133
79
81
26
557
2,377 $

631 $
251
30
52
24
246
33
1,267 $

Loans a

Total
1,386
997
163
131
105
272
590
3,644

$

$

2022
Grants b

718 $
559
221
247
47
7
748
2,547 $

Total

812 $
366
46
25
11
129
52
1,441 $

1,530
925
267
272
58
136
800
3,988

Variance
$

$

(144)
72
(104)
(141)
47
136
(210)
(344)

a. Excludes PSW related disbursements - $12 million (FY23 YTD - $6 million).
b. Excludes Project Preparation Advances (PPA).

As of September 30, 2023, 56% of loans outstanding were on regular terms (75 basis points SDR equivalent service
charge) (Table 8). For a summary of financial terms for IDA’s lending products, refer to IDA’s MD&A for the fiscal
year ended June 30, 2023, Section V: Development Activities, Products and Programs.
The increase in IDA’s revenue on loans in FY24 YTD compared to FY23 YTD was primarily due to the higher
average balances of loans outstanding and the increase in interest rates on non-concessional loans in FY24 YTD
compared to FY23 YTD.
Table 8: Revenue and Loan Balances by Product Category
Interest revenue on loans a

In millions of U.S. dollars

Category
Loans
Concessional
Regular
Blend
Hard b
SML
50-yearNon-concessional c
Others d
Total

For the three months ended
September 30,

Balance as of September 30,
2023
2022

$

$

105,617
69,282
1,259
3,035
1,250
9,569
113
190,125$$

101,235
63,634
1,263
NA
NA
6,565
56
172,753

2023

$

$

206
286
11
NA
NA
122
3
628

2022

$

$

200
254
12
NA
NA
50
1
517

a. Excludes interest rate swap income or expense from loan related derivatives - $4 million of revenue in FY24 YTD ($1 million of
expense in FY23 YTD).
b. Effective FY18, Hard-term loans are no longer offered.
c. In addition, $7 million of commitment charges were earned in FY24 YTD on undisbursed balances of non-concessional loans($7 million in FY23 YTD).
d. Represents loans under the PSW and others.

Provision for losses on loans and other exposures
In FY24 YTD, IDA recorded a provision expense for losses on loans and other exposures of $85 million compared
to a provision expense of $52 million in FY23 YTD. The increase was primarily due to the changes in exposure in
FY24 YTD compared to FY23 YTD. For adjusted net income purposes, the provision expense for losses on loans
and other exposures excludes the provision for debt relief under HIPC/MDRI and the provision for grant advances,since these are funded by contributions from members.

14

IDA Management's Discussion and Analysis: September 30, 2023

Section IV: Financial Results

Management’s Discussion and Analysis

Results from Investing Activities
Investment Portfolio
IDA’s net investment portfolio was $30.7 billion as of September 30, 2023, unchanged from June 30, 2023. See
Notes to the Condensed Quarterly Financial Statements for the period ended September 30, 2023, Note C –Investments.
Investment interest revenue, net of derivatives
During FY24 YTD, IDA’s net investment interest revenue was $315 million, an increase of $158 million comparedwith the same period in FY23. The increase was mainly driven by the higher interest rates in FY24 YTD comparedto FY23 YTD.
Figure 4: Net Investment Portfolio

Figure 5: Investment Revenue, net - YTD

In billions of U.S. dollars

In millions of U.S. dollars

50
40

400

39.6
30.7

30

30.7

320
240

20

160

10

80

0

0
Jun 22Jun 23

Sep 23

FY20

FY21

FY22

FY23

FY24

Unrealized mark-to-market gains (losses) on investments-trading portfolio, net
During FY24 YTD, IDA's investments-trading portfolio, excluding IDA's share of returns from PEBP and PCRF,
had unrealized mark-to-market gains of $22 million, compared to $71 million of unrealized mark-to-market losses in
FY23 YTD. The change was primarily driven by the unrealized mark-to-market gains in FY24 YTD from EUR
denominated bonds approaching maturity and therefore less sensitive to changes in interest rates.

Results from Borrowing Activities
As of September 30, 2023, the fair value of the market borrowing portfolio was $20.8 billion, an increase of $1.2
billion compared to June 30, 2023. The increase was mainly due to the net issuances during the period.
As of September 30, 2023, the market borrowings recorded at amortized cost were $8.4 billion, a decrease of $0.2
billion from June 30, 2023. The decrease was due to currency translation gains during the period.
Concessional partner loans from members recorded at amortized cost were $7.1 billion as of September 30, 2023, adecrease of $0.1 billion from June 30, 2023.
During FY24 YTD, IDA's borrowing expenses, net of derivatives, was $339 million, an increase of $193 million
compared with the same period in FY23. The increase in borrowing expenses was primarily due to the increase ininterest rates in FY24 YTD compared to FY23 YTD.
See Notes to the Condensed Quarterly Financial Statements for the period ended September 30, 2023, Note E –Borrowings.

IDA Management's Discussion and Analysis: September 30, 2023

15

Section IV: Financial Results

Management’s Discussion and Analysis
Figure 6: Borrowing Portfolio

Figure 7: Borrowing expenses, net - YTD

In billions of U.S. dollars

In millions of U.S. dollars

Market borrowings at fair valueMarket borrowings at amortized cost
Concessional partner loans at amortized cost

400
320

40
30
20
10

7.0

7.2

7.1

240

6.2

8.6

8.4

160

21.9

19.6

20.8

Jun 22Jun 23

Sep 23

80
0

0

FY20

FY21

FY22

FY23

FY24

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 October 13, 2023, IBRD’s Board of Governors approved a transfer of$291 million from FY23 allocable income to IDA which was received by IDA on October 24, 2023.

Net Non-Interest Expenses
IDA’s net non-interest expenses are primarily comprised of administrative expenses, net of revenue from externally
funded activities. IBRD and IDA's administrative budget is a single resource envelope that funds the combined work
programs of both entities. The allocation of administrative expenses between IBRD and IDA is based on an agreed
cost and revenue sharing methodology, approved by their Boards. The allocation 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 otherexternally funded activities.
The increase in net non-interest expenses from FY23 YTD to FY24 YTD, on both a U.S. GAAP basis and on an
adjusted net income basis, was primarily driven by higher staff costs and higher travel expenses (Table 9).

16

IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section IV: Financial Results

Table 9: Net Non-Interest Expense
In millions of U.S. dollars
For the three months ended September 30,

2023

2022

$

320 $
27
82
25
25
34
28
541 $

302 $
20
83
41
23
33
29
531 $

18
7
(1)
(16)
2
1
(1)
10

$
$

(113)
(60)
(173) $
368 $

(110)
(56)
(166) $
365 $

(3)
(4)
(7)
3

Adjustments to arrive at Net non-interest expenses - Adjusted Net Income basis
Pension, RAMP and EFO adjustments a
Net non-interest expenses - Adjusted Net Income (Non-GAAP basis)
$

48
416 $

27
392 $

21
24

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
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) - GAAP basis$

Variancea. Adjustments are included in the Pension and other adjustments line in Table 3.

During FY24 YTD, IDA’s net other expenses were $16 million compared to $12 million net other revenue in FY23
YTD. The change was due to higher PPA grant expenses, net of cancellations and conversion of previously
approved PPA grants into loans. Converted PPA grants are included in loans outstanding provided to the borrowerand correspondingly, prior grant expenses are reversed.
Table 10: Other (Expenses) Revenue, net
In millions of U.S. dollars
For the three months ended September 30,
PPA grants and others a
Guarantee fees and others b
Commitment charges
Other (Expenses) Revenue, net (Table 3)

2023
$

$

(24) $
17(16) $

2022

Variance

(1) $
6
7
12 $

(23)
(5)
—
(28)

a. Included in Non-interest expenses – Other in the Condensed Statements of Income.
b. Included in Non-interest revenue – Other in the Condensed Statements of Income.

Unrealized mark-to-market gains (losses) on non-trading portfolios, net
During FY24 YTD, the non-trading portfolios had $656 million of net unrealized mark-to-market gains ($27 millionof net unrealized mark-to-market gains in FY23 YTD). The increase was mainly driven by higher unrealized markto-market gains from the derivatives held for the CVP, managed as part of Asset-Liability management (ALM), as aresult of a higher increase in U.S. dollar and EUR interest rates for long tenors in FY24 YTD compared to FY23
YTD. (Section V: Risk Management).

IDA Management's Discussion and Analysis: September 30, 2023

17

Management’s Discussion and Analysis

Section IV: Financial Results

Table 11: Unrealized Mark-to-Market gains (losses) on non-trading portfolios, net
In millions of U.S. dollars
For the three months ended September 30,
Asset-liability management
Investment portfolio
Other a
Total

2023
$

$

628 $
(2)
30
656 $

2022

Variance

27 $
(8)
8
27 $

601
6
22
629

a. Other comprises mark-to-market gains (losses) on borrowings, loan related derivatives and on PSW associated instruments.

Non-functional currency translation adjustment gains (losses), net
Non-functional currency translation adjustment gains or losses represent unrealized exchange rate gains or losses
resulting from the hedging of exchange rate risk related to future donor contributions, borrowings, and all otherassets and liabilities held on IDA’s Balance Sheets, that are denominated in currencies other than the SDR and its
component currencies. The translation adjustment gains in FY24 YTD and FY23 YTD were primarily driven by thehedging of exchange rate risk related to future donor contributions. Certain members pledge their future equity
contributions in non-SDR currencies. These future cash flows are economically hedged using currency forwards.
The economic offset is inherent in the future contribution inflows. The payable portion of the currency forward
contracts are denominated in non-functional currencies. The depreciation or appreciation of these currencies against
the U.S. dollar results in exchange rate gains or losses which are recorded in the income statements. Accordingly,
the translation adjustment gains on non-functional currencies were $17 million in FY24 YTD, compared totranslation adjustment gains of $479 million in FY23 YTD. The decrease in translation gains in FY24 YTD wasprimarily driven by less depreciation of certain non-functional currencies against the U.S. dollar when compared to
FY23 YTD.

18

IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section V: Risk Management

Section V: Risk Management
Risk Governance
IDA’s risk management processes and practices continually evolve to reflect changes in activities in response tomarket, credit, product, operational, and other developments. The Board, particularly the Audit Committee
members, periodically reviews trends in IDA’s risk profiles and performance, and any major developments in risk
management policies and controls.
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.

Risk Oversight and Coverage
The Vice President and WBG Chief Risk Officer (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 to people, processes, and systems, or from external events.
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 fraud and corruption risks may impact IDA-financed projects, OPCS, the Regions and Practice Groups, andthe Integrity Vice Presidency jointly address such issues.
For a detailed discussion of the risk governance and risk oversight and coverage, see IDA's MD&A for the fiscal
year ended June 30, 2023, Section IX: Risk Management.

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 in its financial activities, which includelending, borrowing, and investing. The primary financial risk to IDA is the country credit risk inherent in its loan
and guarantee portfolio. IDA is also exposed to risks in its liquid asset and derivative portfolios, where the majorrisks are interest 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 across business units.

Geopolitical events and Global Outlook
In response to geopolitical events and other ongoing challenges to the global outlook, IDA continues to support its
client needs in a financially sustainable manner.
As of September 30, 2023, IDA had sufficient resources to meet its liquidity requirements and continues to haveaccess to capital market resources. IDA continues to maintain a robust liquidity position and flexibility to access thenecessary liquidity resources. Management remains vigilant in assessing funding needs in the medium and longerterm to manage the effect of any significant market movements.
IDA’s capital remains adequate and the DSC ratio remains above the zero percent policy minimum (Table 12).
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 include IDA’s current assessment of country credit
risk. The fair values of related financial instruments reflect counterparty credit risk in IDA’s portfolios.
Developments in the market continue to be closely monitored and managed.
IDA continues to monitor associated risks and mitigates its exposures and risks in line with the risk governanceframework.

Capital Adequacy
IDA uses a solvency-based capital adequacy model, which mandates that IDA hold capital for credit risk, market
risk and operational risk covering all activities and assets on its books. The main measure of capital adequacy is theDSC, a non-GAAP measure, which is the capital available to support future commitments 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

IDA Management's Discussion and Analysis: September 30, 2023

19

Management’s Discussion and Analysis

Section V: Risk Management

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 for loan losses
and other exposures. The TRR is the minimum capital required to cover expected and unexpected losses, (under astressed but still plausible downside scenario), in connection with all of IDA’s currently existing operations andassets. Within the TRR, there is also a capital allowance to reflect losses that result from valuing IDA’s concessionalloan portfolio in present value terms using market interest rates. This allowance is calculated using a stressed interest
rate to account for a potential future rise in market interest rates. In addition, TRR includes capital requirements toaccount for development grants which are approved but not yet expensed. It also takes into consideration the capital
adequacy protection provided by long-term fixed rate borrowings against changes in market interest rates. The CB isequivalent to 10 percent of TRA.
As of September 30, 2023, the DSC was 23.4%, 0.7 percentage points lower compared with June 30, 2023 (24.1%).
The decrease was mainly due to the decrease in TRA and the increase in TRR. The decrease in TRA was primarily
driven by the decline in equity as a result of the currency translation losses due to the depreciation of the SDR
against the U.S. dollar during the period. The increase in TRR was primarily due to higher capital requirements forthe increase in conditional development grants approved but not yet expensed (Table 12).
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 andliquidity 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, 2023, Section IX: Risk Management.
Table 12: 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

September 30, 2023
$
190.3
126.8
19.0
$
44.5
23.4%

$

$

June 30, 2023
191.3
126.1
19.1
46.1
24.1%

$

$

Variance
(1.0)
0.7
(0.1)
(1.6)
(0.7)%

Asset - Liability Management (ALM)
Since FY22, IDA’s interim ALM policy allows, under specific criteria, funding fixed rate loans with long-term fixed
rate market debt and CPLs (both reported at amortized cost), as part of IDA’s interest rate risk management to alignthe interest rate and maturities of the debt with those of the loan portfolio. For more details, see Notes to theCondensed Quarterly Financial Statements for the period ended September 30, 2023, Note E: Borrowings.
Capital Value Protection Program
In FY20, as part of IDA’s ALM policies, IDA executed pay fixed, receive floating forward-starting swaps with anotional 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 long-term 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 for the period ended September 30, 2023, 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.

20

IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section V: Risk Management

Country Credit Risk
IDA’s lending management framework encompasses the long-standing PBA mechanism and allocation frameworkagreed at each replenishment, complemented by additional considerations required when accessing debt markets toensure adherence to risk management (capital adequacy) requirements.
IDA regularly assesses the country credit risk of all its borrowers. IDA produces credit risk ratings for all its
borrowing countries, which reflect country economic, financial, and political circumstances, and also considers
environmental, social and governance (ESG) risk factors. Based on these risk ratings, to manage overall portfolio
risk, the allocation outcomes of the PBA and other mechanisms are reviewed to ensure that they are compatible with
the Deployable Strategic Capital Framework and Single Borrower Limit (SBL).
For FY24, the SBL has been set at $46 billion (25% of $185.8 billion of equity as of June 30, 2023), a marginalincrease compared to $45 billion for FY23. Currently, the maximum 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 currently not a constraining factor.
As of September 30, 2023, the ten countries with the highest exposures accounted for 64% of IDA’s total exposure(Figure 8). Monitoring these exposures relative to the SBL requires consideration of the repayment profiles ofexisting loans, as well as disbursement profiles and projected new loans and guarantees.
Figure 8: Country Exposures as of September 30, 2023
In billions of U.S. dollars

Top Ten Country Exposures
Bangladesh

19.1

India

17.4

Pakistan

16.8

Nigeria

14.4
12.3

Vietnam
Ethiopia

11.6

Kenya

11.3

Tanzania

9.9

Ghana

6.0

Uganda

4.6
0

2

4

6

8

10

12

14

16

18

20

22

Expected 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 service
charges, interest or principal payments on its loans or participate in debt rescheduling agreements with respect to its
loans. As of September 30, 2023, there was one IDA borrowing country in the accrual portfolio with overdue
payments beyond 90 days.
As an exception to the practices set forth for treatment of overdue payments, IDA has provided financing tocountries with overdue payments in specific situations. For further details, refer to IDA’s MD&A for the fiscal year
ended June 30, 2023, Section IX: Risk Management.
Accumulated Provision for Losses on Loans and Other Exposures
As of September 30, 2023, IDA had $190.1 billion of loans outstanding, of which loans in nonaccrual status
represent 0.5%. IDA’s total provision for losses on loans and other exposures was $5.5 billion, which represents a

IDA Management's Discussion and Analysis: September 30, 2023

21

Section V: Risk Management

Management’s Discussion and Analysis

provisioning rate of 2.1% of the underlying exposures as of September 30, 2023 ($5.5 billion as of June 30, 2023,
2.0% of the underlying exposure). See Notes to the Condensed Quarterly Financial Statements for the period ended
September 30, 2023, Note D – Loans and Other Exposures.
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 managementof these 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). Total commercial counterparty credit exposure, net of collateral held, was $32.2 billion as of
September 30, 2023. As of September 30, 2023, 76% of IDA’s investment portfolio is rated AA or above, reflecting
IDA’s continued preference for highly rated securities and counterparties across all categories of financial
instruments (Table 13). The decrease in exposure rated AAA was primarily driven by a credit rating agency's
downgrade of U.S Treasuries holdings in FY24 YTD.
For the contractual value, notional amounts and related credit risk exposure amounts by instrument, see Notes to theCondensed Quarterly Financial Statements for the period ended September 30, 2023, Note F: Derivative
Instruments.
Table 13: 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 lower/unrated
Total

Counterparty Rating
AAA
AA
A
Total

Sovereigns$$a7,222 $
6,944
3,336
53
17,555 $Sovereigns$$

9,128 $
5,563
2,353
17,044 $As of September 30, 2023
NonNet Swap
Total Exposure
Sovereigns
Exposure
2,028 $
8,108
4,099
—
14,235 $NonSovereigns

— $
135
244
—
379 $

9,250
15,187
7,679
53
32,169As of June 30, 2023
Net Swap
Total Exposure
Exposure

3,021 $
7,401
4,555
14,977 $

— $
148
215
363 $

12,14913,112
7,123
32,384% of Total
29 %
47
24
*
100 %

% of Total
38 %
40
22
100 %

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

Market Risk
IDA is exposed to changes in interest and exchange rates and uses derivatives to manage its exposure to market
risks. Derivatives are used to align the interest and currency composition of its assets (loan and investment trading
portfolios) with that of its liabilities (borrowing portfolio) and equity, with the exception of the long-term fixed rate
market debt that is used to fund fixed rate loans. The loan, investment and borrowing 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

22

IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section V: Risk Management

profile, the duration of IDA’s loans is relatively long (11 years). This long duration, combined with volatility inmarket interest rates, results in significant year-on-year variability in the fair value of loans. 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. IDA’s investment-trading portfolio (liquid asset portfolio) has a relatively low sensitivity to interest
rates with a duration of five months as of September 30, 2023.
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.
Alternative Reference Rate
The Financial Conduct Authority (FCA), the regulator of London Interbank Offered Rate (LIBOR), confirmed that
effective December 31, 2021, all the LIBOR settings, except for certain USD LIBOR, which were available until
June 30, 2023, ceased to be provided by any administrator or were no longer representative. In consideration of theregulatory guidance and in preparation for the global markets’ transition away from LIBOR, IDA took the necessary
steps to facilitate a smooth and orderly transition of its financial instruments to alternative reference rates. Thistransition started on January 1, 2022.
Out of the total loans outstanding as of September 30, 2023, 98% were not subject to transition to alternativereference rates as they were on fixed-rate terms. The remaining 2% have either transitioned or will be transitioned as
the loans reset by December 31, 2023.
As of September 30, 2023, IDA’s borrowing portfolio before associated derivatives carries only fixed interest rates
and was not subject to transition to alternative reference rates. Out of the total derivative portfolio notional as of
September 30, 2023, 61% of the total derivative portfolio notional were not subject to transition to alternativereference rates, approximately 35% had transitioned, and 4% were still subject to transition which started in July
2023, as derivatives reset. For the vast majority of the derivative portfolio subject to transition, IDA either has
sufficient provisions in the derivative agreements with its counterparties or has adhered to the International Swaps
and Derivatives Association (ISDA) 2020 IBOR Fallbacks Protocol (IBOR Protocol) or works bilaterally withcounterparties to ensure smooth transition to alternative reference rates.
IDA will continue to work with key stakeholders, including internal subject matter experts, senior management,
borrowers, industry groups and other market participants, to mitigate potential financial and operational risks towhich IDA is exposed, and to ensure an orderly completion of the transition to the alternative reference rates.
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 from exchange rate movements, as measured by thecapital adequacy framework. 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 encompasses the hedging
of currency risk arising from the various inflows and outflows inherent in IDA’s business model.
IDA uses currency forward contracts to convert future inflows from members’ receivables provided in national
currencies into the five currencies of the SDR basket, thereby aligning the currency composition of member
contributions with the net cash outflows relating to loans and grants, which are primarily denominated in the SDR.
The payable leg of the currency forward contracts economically hedging member equity contribution pledges isdenominated in non-functional currencies. IDA pays the market counterparty in a non-SDR currency. Accordingly,(depreciation) appreciation of the non-SDR currencies against the U.S. dollar results in exchange rate gains orlosses, which are reported in the Statements of Income. The translation adjustment on future inflows from members,
even though they are not recorded in the balance sheet, is the economic offset to the translation adjustment on nonfunctional currencies of currency forward contracts.

IDA Management's Discussion and Analysis: September 30, 2023

23

Management’s Discussion and Analysis

Section V: Risk Management

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’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 FY24, theprudential minimum has been set at $24.7 billion. As of September 30, 2023, IDA’s liquid assets were $30.5 billion,
124% of the FY24 prudential 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 physicalsecurity and staff health and safety, data and cyber security, business continuity, and third party vendor risks. IDA’s
approach to identifying 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.

24

IDA Management's Discussion and Analysis: September 30, 2023

Management’s Discussion and Analysis

Section VI: Governance

Section VI: Governance
Senior Management Changes
There were no senior management changes during the first three months of FY24.

IDA Management's Discussion and Analysis: September 30, 2023

25

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26

IDA Management's Discussion and Analysis: September 30, 2023

INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA)
CONTENTS
September 30, 2023

CONDENSED QUARTERLY FINANCIAL STATEMENTSCONDENSED BALANCE SHEETS

28

CONDENSED STATEMENTS OF INCOME

30

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

31

CONDENSED STATEMENTS OF CHANGES IN ACCUMULATED DEFICIT

31

CONDENSED STATEMENTS OF CASH FLOWS

32

NOTES TO CONDENSED QUARTERLY FINANCIAL STATEMENTS

33

INDEPENDENT AUDITOR'S REVIEW REPORT55

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)27

CONDENSED BALANCE SHEETS
Expressed in millions of U.S. dollars
September 30, 2023
(Unaudited)
AssetsDue from banks—Notes C and J
Unrestricted cash
Restricted cash$

Investments (including securities transferred under repurchase or
securities lending agreements of Nil—September 30, 2023; $217 million—June 30, 2023) —Notes C, G and J

506
23
529

June 30, 2023
(Unaudited)

$

665
24
689

31,75331,822

Securities Purchased Under Resale Agreements—Notes C and J

109

168

Derivative assets, net—Notes C, F, G and J

625

364

1,348

1,291

267,645

269,364(77,520)
190,125(3,960)(21)
186,144(77,680)
191,684(3,993)(22)
187,669

6,085

5,479

Receivable from affiliated organization—Note G
Loans outstanding—Notes D, G and J
Total loans approved
Less: Undisbursed balance (including signed loan commitments of$69,050 million—September 30, 2023; $68,542 million—
June 30, 2023)
Loans outstanding
Less: Accumulated provision for loan losses
Deferred loan income
Net loans outstanding
Other assets—Notes C, D, G and H
Total assets

28$

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

226,593$

227,482

Liabilities
Borrowings—Notes E and J
Market borrowings, at fair valueMarket borrowings, at amortized cost
Concessional partner loans, at amortized cost

September 30, 2023
(Unaudited)

June 30, 2023
(Unaudited)$$

17,8598,434
7,060
33,353

16,786
8,627
7,154
32,567

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

221

Derivative liabilities, net—Notes C, F, G and J

978

1,244

Payable for development grants—Note H

2,800

3,092

Payable to affiliated organization—Note G

523

594

4,190
41,844

3,982
41,700310,196

310,672(34,664)(4,213)271,319(35,201)(4,213)
271,258(12,854)(13,477)

(248)

(247)

Accumulated deficit (Statements of Changes in Accumulated Deficit)(62,744)(62,806)

Accumulated other comprehensive loss—Note I(10,724)(8,946)

Total equity

184,749

185,782

Other liabilities—Notes C and D
Total liabilities
EquityMembers' subscriptions and contributions—Note B
Subscriptions and contributions committed
Less:
Subscriptions and contributions receivable
Cumulative discounts/credits on subscriptions and contributions, net
Subscriptions and contributions paid-in
Nonnegotiable, non interest-bearing demand obligations on account ofmembers' subscriptions and contributions
Deferred amounts to maintain value of currency holdings

Total liabilities and equity$

226,593$

227,482

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

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)29

CONDENSED STATEMENTS OF INCOME
Expressed in millions of U.S. dollars
Three Months Ended September 30,(Unaudited)
2023
2022
Interest revenue
Loans, net—Note D
Investments, net—Notes C and G
Asset-liability management derivatives, net—Notes F and J

$

632
315
14

$

516
157
2

Borrowing expenses, net—Note E

(339)

(146)

Interest revenue, net of borrowing expenses

622

529

Provision for losses on loans and other exposures—Note D

(85)

(52)

Non-interest revenue
Revenue from externally funded activities—Note G
Commitment charges—Note D
Other
Total

173
7
1
181

166
7
6
179

Non-interest expenses
Administrative—Note G
Other
Total

(541)
(24)
(565)

(531)
(1)
(532)

Development grants—Note H(776)(1,058)Non-functional currency translation adjustment gains, net

17

479

Unrealized mark-to-market gains (losses) on Investments-Trading
portfolio, net—Notes F and J

12

(107)

Unrealized mark-to-market gains on non-trading portfolios, net—Note J

656

27

Net income (loss)

$

62

$

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

30

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)(535)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Expressed in millions of U.S. dollars

Three Months Ended September 30,(Unaudited)
2023
2022

Net income (loss)

$

62

$

(535)

Other comprehensive loss—Note I
Currency translation adjustments on functional currencies
Net Change in Debit Valuation Adjustment (DVA) on Fair Value option
elected liabilities
Comprehensive loss$

(1,771)(5,419)(7)—(1,716) $(5,954)

CONDENSED STATEMENTS OF CHANGES IN ACCUMULATED DEFICIT
Expressed in millions of U.S. dollars
Three Months Ended
September 30,(Unaudited)
2023
2022
Accumulated deficit at beginning of the fiscal year$

Net income (loss)
Accumulated deficit at end of the period$(62,806) $(59,544)

62

(535)

(62,744) $(60,079)

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

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)31

CONDENSED STATEMENTS OF CASH FLOWS
Expressed in millions of U.S. dollars
Three Months Ended
September 30,(Unaudited)
2023
2022
Cash flows from investing activities
Loans
Disbursements
Principal repayments
Non-trading securities—Investments
Repayments
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 income (loss)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating
activities
Provision for losses on loans and other exposures, charge
Non-functional currency translation adjustment gains, net
Unrealized mark-to-market gains on non-trading portfolios, net
Other non-interest 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 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(Decrease) Increase in ending balances resulting from exchange rate fluctuations:
Loans outstanding
Investment portfolio
Borrowings portfolio
Derivatives—Asset-liability management
Principal repayments written off under Heavily Indebted Poor Countries Debt Initiative
Interest paid on borrowing portfolio$$(2,389)1,794$(2,553)
1,677

43
(552)

53
(823)

682

614

72
(25)

1,989
(25)

1,546
(1,341)
997
(2)
1,929

2,875
(1,220)(1,649)
(2)
2,582

62

(535)

85
(17)
(656)
24
70

52
(479)
(27)
1
35

(524)
(574)
(1,530)

(680)
(184)
(1,817)

(7)
(160)
689
529

(11)
(69)
686
617

(2,151)
(379)
(520)
185
3
197

$

$

(6,204)(1,176)(1,325)846
1083The Notes to Condensed Quarterly Financial Statements are an integral part of these Statements.

32

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)NOTES TO THE 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 30,2023 audited financial statements and notes included therein. The condensed comparative information that has been
derived from the June 30, 2023 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 States ofAmerica (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 three 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.
The Executive Directors approved these financial statements for issuance on November 10, 2023, which was also
the date through which IDA’s management evaluated subsequent events.
Accounting and Reporting Developments
Evaluated Accounting Standards:
In March 2022, the FASB issued the ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures, which
eliminates the accounting guidance on troubled debt restructurings for creditors and amends the guidance on“vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. This ASU
became effective for IDA from the quarter ended September 30, 2023. As a result of adoption of this ASU, IDA
included additional vintage disclosure information in Note D - Loans and Other exposures.

NOTE B—MEMBERS’ SUBSCRIPTIONS AND CONTRIBUTIONS, AND MEMBERSHIP
The movement in Subscriptions and Contributions paid-in is summarized below:
Table B1: Subscriptions and contributions paid-in
In millions of U.S. dollars
Beginning of the fiscal year
Cash contributions received
Demand obligations received
Translation adjustment
End of the period/fiscal year

September 30, 2023$
271,258
249
—
(188)
$
271,319$$

June 30, 2023
257,777
5,100
8,506
(125)
271,258

During the three months ended September 30, 2023, IDA encashed demand obligations totaling $433 million.

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)33

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 September 30, 2023, IDA’s Investments were mainly comprised of government and agency obligations (66%)
and time deposits (33%), with all of the instruments classified as either Level 1 or Level 2 within the fair value
hierarchy. As of September 30, 2023, the largest holding of investments with a single counterparty was German
government instruments (15%).
A summary of IDA’s Investments is as follows:
Table C1: Investments-composition
In millions of U.S. dollars
September 30, 2023
Trading
Government and agency obligations
Time deposits
Asset-backed securities
Non-trading
Debt security
Total

34

June 30, 2023$

20,861
10,59995$

19,77011,703105$

31,555$31,578$198
31,753$244
31,822

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)IDA manages its investments on a net portfolio basis. IDA uses derivative instruments to manage currency andinterest rate risk in the investment portfolio. For details regarding these instruments, see Note F—Derivative
Instruments. The following table summarizes IDA’s net portfolio position:
Table C2: Net investment portfolio position
In millions of U.S. dollars
September 30, 2023
Investments
Trading
Non-trading
Total

$

31,555198
31,753June 30, 2023$

31,578244
31,822

Securities purchased under resale agreements

109

168

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

(786)

(660)

Currency swaps and currency forward contracts
Interest rate swaps
Total

213
3
216

135
5
140

Derivative Liabilities
Currency swaps and currency forward contracts

(14)

(49)

(1)
(15)

—
(49)

Derivative Assets

Other

b

Total
Cash held in investment portfolio cReceivable from investment securities traded and other assets d
Payable for investment securities purchased e
Net Investment Portfolio

$

496
236
(1,303)30,706 $570
3(1,322)30,672a. As of September 30, 2023, this amount includes cash collateral of $786 million received from counterparties under derivative
agreements ($439 million - June 30, 2023).
b. These relate to to-be-announced (TBA) Securities, swaptions, exchange traded options and futures contracts.
c. These amounts are included in Unrestricted cash under Due from banks on the Condensed Balance Sheets.
d. These amounts are included in Other assets on the Condensed Balance Sheets.
e. These amounts are included in Other liabilities on the Condensed Balance Sheets. As of September 30, 2023, short sales
amounted to $111 million ($112 million - June 30, 2023).

As of September 30, 2023, IDA’s non-trading investment portfolio (principal amount due on a debt security withIFC) was $219 million ($262 million—June 30, 2023). For details regarding this instrument, see Note G Transactions with Affiliated Organizations.

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)35

Commercial Credit Risk
For the purposes 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 C3: Collateral received
In millions of U.S. dollars
September 30, 2023
Collateral received
Cash
Securities a
Total collateral received
Collateral permitted to be repledged
Amount of collateral repledged
Amount of cash collateral invested

$
$
$
$

786
391
1,177
1,177
—
586

June 30, 2023
$
$
$
$

439
104
543
543
—
349

a.Includes $21 million of excess collateral received as of September 30, 2023 (Nil – June 30, 2023).

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 asset-backed
securities (ABS). These transactions have been conducted under legally enforceable master netting arrangements,
which allow IDA to reduce its gross credit exposure related to these transactions. IDA presents its securities lending
and repurchases, as well as resales, on a gross basis on the Condensed Balance Sheets. As of September 30, 2023
and June 30, 2023, there were no amounts that could potentially be offset as a result of legally enforceable masternetting arrangements.
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.

36

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

The following is a summary of the carrying amount of the securities transferred under repurchase or securities
lending agreements, and the related liabilities:
Table C4: Amounts related to securities transferred under repurchase or securities lending agreements
In millions of U.S. dollars
September 30, 2023
Securities transferred under
repurchase or securities lending
agreements

Liabilities relating to securities
transferred under repurchase or
securities lending agreements

$

$

—

—

June 30, 2023$$

Financial Statement Presentation

217

Included under Investments on
the Condensed Balance Sheets

221

Included under Securities sold under
repurchase agreements, securities lent
under securities lending agreements,
and payable for cash collateral
received on the Condensed Balance
Sheets

As of September 30, 2023, there were no liabilities relating to securities transferred under repurchase or securities
lending agreements ($221 million—June 30, 2023) and there were no unsettled trades relating to repurchase or
securities lending agreements. There were no replacement trades entered into in anticipation of maturing trades of asimilar amount (Nil—June 30, 2023).
In the case of resale agreements, IDA receives collateral in the form of liquid securities and is permitted torepledge these securities. While these transactions are legally considered to be true purchases and sales, thesecurities received are not recorded on IDA’s Condensed Balance Sheets as the accounting criteria for treatment asa sale have not been met. As of September 30, 2023, and June 30, 2023, there were no unsettled trades pertaining tosecurities purchased under resale agreements. For resale agreements, IDA received securities with a fair value of$111 million as of September 30, 2023 ($169 million—June 30, 2023). As of September 30, 2023 and June 30,
2023, none of these securities had been transferred under repurchase or security lending agreements.
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 signed loan commitments, Deferred Drawdown Options (DDO),
irrevocable commitments, grant advances, project preparation advances and guarantees. Based on IDA’s internal
credit quality indicators, the majority of the loans outstanding are in the Medium and High risk classes.
IDA excludes the interest and service charges receivable balance from the amortized cost basis and the related
disclosures as permitted by U.S. GAAP. As of September 30, 2023, accrued interest income and service charges onloans of $713 million ($659 million—June 30, 2023) are presented in Other assets on the Condensed Balance
Sheets.
As of September 30, 2023, less than 0.5% of IDA’s loans were in nonaccrual status and related to three borrowers.
The total accumulated provision for losses on loans in accrual status and nonaccrual status was 2% of total loans as
of September 30, 2023.
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 risks, 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,and corporate sector debt and vulnerabilities. The analysis also takes into account Environmental, Social and

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)37

Governance factors. For the purpose of analyzing their risk characteristics, these exposures are grouped into threeclasses in accordance with assigned borrower risk ratings, which relate to the likelihood of loss: Low, Medium andHigh risk classes, as well as exposures in nonaccrual status.
IDA’s borrower country risk ratings are key determinants in the provision for loan losses. Country risk ratings ofborrowers in accrual status are grouped in pools with similar credit ratings for the purpose of the calculation of the
expected credit losses. Exposure for certain countries in accrual status may be individually assessed on the basis thatthey do not share common risk characteristics with an existing pool of exposures. All exposures for countries innonaccrual status are individually assessed. Country risk ratings are determined in review meetings that take place
several times a year. All countries are reviewed at least once a year, or more frequently if circumstances warrant, todetermine the appropriate ratings.
An assessment was also performed to determine whether a qualitative adjustment was needed on the loan loss
provision as of September 30, 2023, including consideration of global and macroeconomic events. 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
September 30, 2023
Days past due
Up to 45
Risk Class
Low$—
Medium—High
19
Loans in accrual status
19
Loans in nonaccrual status
5
Total
$
24

46-60
$

$

—
—
7
7
1
8

61-90
$

$

—
—
*
—
2
2

91-180
$

$

—
—
2
2
10
12

Over 180

Total Past
Due

Current

$

$

$

$

—
—
—
—
449
449

$

—
—
28
28
467
495

Total

*
$
*
18,04718,047
171,191 a 171,219
189,238
189,266392
859$ 189,630 $ 190,125

Table D1.1:
In millions of U.S. dollars
June 30, 2023
Days past due
Up to 45
Risk Class
Low$—
Medium—High
22
Loans in accrual status
22
Loans in nonaccrual status
7
Total
$
29

46-60
$

$

—
—
*
*
—
*

61-90
$

$

—
—
—
—
3
3

91-180
$

$

—
—
—
—
9
9

Over 180

Total Past
Due

Current

$

$

$

$

—
—
—
—
445
445

$

—
—
22
22
464
486

a. Includes Private Sector Window (PSW) related loans of $113 million ($102 million-June 30, 2023).
* Indicates amount less than $0.5 million

38

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

Total

* $
*
18,65918,659172,134 a 172,156
190,793
190,815405
869$ 191,198 $ 191,684

The table below discloses the outstanding balances of IDA’s loan portfolio classified by the year the loan agreement
was signed. 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.
Table D2: Loan portfolio vintage disclosure
In millions of U.S. dollars
September 30, 2023
Fiscal Year of origination
Prior
Years

$

—
—
336
336
—
336

$

$

*
18,047
171,219
189,266859
190,125

$

3

2023

Low
MediumHigh
Loans in accrual status
Loans in nonaccrual status
Total

$

$

— $
—
83
111
7,240
7,272
7,323
7,383
—
—
$7,323 $ 7,383

$

—
393
10,835
11,228—$ 11,228

$

—
539
9,007
9,546
—
$9,546

$

$

—
—
80
80
—
80

* $
16,921
136,425
153,346859$154,205 $

—
—
24
24
—
24

$

—

$

$

$

$

n.a

n.a

CAT DDOs
disbursed
andrevolving

CAT DDOs
Converted
to Term
Loans

Loans
Outstanding
as of June 30,
2023

$

$

$

—

—

2020

Loans
Outstanding
as of
September 30,
2023

2024

—

2021

CAT DDOs
Converted
to Term
Loans

Risk Class

Current period gross writeoffs a

2022

CAT DDOs
disbursed
andrevolving—

3$

Table D2.1:
In millions of U.S. dollars
June 30, 2023
Fiscal Year of origination
Risk Class

2023

2022

Low
MediumHigh
Loans in accrual status
Loans in nonaccrual status
Total

$

$

—
83
6,964
7,047
—
$ 7,047

2021

2020

— $
— $
—
111
394
542
7,162 10,338
8,956
7,273 10,732
9,498
—
—
—
$7,273 $10,732 $ 9,498

2019

Prior
Years

$

—
$
* $
243
17,286
10,961 127,408
11,204 144,694—
869$11,204 $145,563 $

—
—
24
24
—
24

$

—
—
343
343
—
343

$

*
18,659172,156
190,815869
191,684* Indicates amount less than $0.5 million
a. Relate to the Heavily Indebted Poor Countries (HIPC)/Multilateral Debt Relief Initiative (MDRI).

There was no Catastrophe Deferred Drawdown Option (CAT DDO) outstanding and revolving that was converted toterm loans during the three months ended September 30, 2023.
Accumulated Provision for Losses on Loans and Other Exposures
Management determines the appropriate level of the accumulated provisions for losses, which reflects the expected
losses inherent in IDA’s exposures. Management reassesses the adequacy of accumulated provision on a quarterly
basis and adjustments to the accumulated provision are recorded as a charge to or release of provision in theStatements of Income.
The provision for HIPC Debt Initiative and MDRI is based on a quantitative and qualitative analyses of various
factors, including estimates of Decision Point and Completion Point dates. These factors are reviewed periodicallyas 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. The provision is reduced by the

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)39

amount of the eligible loans written off when the country reaches Completion Point and becomes eligible for MDRI
debt relief.
Changes to the accumulated provision for losses on loans and other exposures are summarized below:
Table D3: Accumulated provisions
In millions of U.S. dollars
September 30, 2023
Loans
Loan
outstanding
commitments
Accumulated provision, beginning of the fiscal year $3,325 $
1,320
Provision, net - charge
1132
Loans written off under:
HIPC/MDRI——Translation adjustment
(37)
(18)
Accumulated provision, end of the period$
3,299 $
1,334
Including accumulated provision for losses on:
Loans in accrual status$
3,066
Loans in nonaccrual status
233
Total
$
3,299
Loans:
Loans in accrual status
Loans in nonaccrual status
Loans outstanding

Debt relief
under
HIPC/MDRI
$
668
—

$
$
$

Other a
$
198
42

(3) ᵇ
(4)
661
$

—
—
240

396
265
661

$
$

Total
5,511
85

$

(3)
(59)
5,534

$
$
$
$

3,462
498
3,960
189,266859
190,125

Table D3.1:
In millions of U.S. dollars
June 30, 2023
Loans
Loan
outstanding
commitments
Accumulated provision, beginning of the fiscal year $2,876 $
1,082
Provision, net - charge (release)441
223
Loans written off under:
HIPC/MDRI and other(3)—
Translation adjustment
1115
Accumulated provision, end of the fiscal year$
3,325 $
1,320
Including accumulated provision for losses on:
Loans in accrual status$
3,089
Loans in nonaccrual status
236
Total
$
3,325
Loans:
Loans in accrual status
Loans in nonaccrual status
Loans outstanding

Debt relief
under
HIPC/MDRI
$
707
(18)

$
$
$

a. These amounts primarily relate to outstanding guarantees.
b. Represents debt service reduction under HIPC.

40

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

Other a$15542(22) ᵇ
1
668
$
402
266
668

—
1
198

$

$
$
$
$
$

Total
4,820
688
(25)
28
5,511
3,491
502
3,993
190,815869
191,684

Reported as Follows
Condensed Statements of Income

Condensed Balance Sheets
Accumulated Provision forLosses on:
Loans outstanding

Accumulated provision for loan losses

Provision for losses on loans and otherexposures, release (charge)

Debt Relief under
HIPC/MDRI

Accumulated provision for loan losses

Provision for losses on loans and otherexposures, release (charge)

Loan commitments and Other
Exposures

Other assets/ liabilities

Provision for losses on loans and otherexposures, release (charge)

The accumulated provision for losses on loan and other exposures as of September 30, 2023 was $5,534 million,
compared to $5,511 million as of June 30, 2023. This increase was primarily driven by changes in exposures.
Loans to be written off under MDRI
During the three months ended September 30, 2023, and the fiscal year ended June 30, 2023, there were no loans
written off under the MDRI.
Overdue Amounts
As of September 30, 2023, principal of $2 million and charges of $1 million from one borrower country in accrual
status was overdue by more than three months.
The following tables provide a summary of selected financial information for loans in nonaccrual status:
Table D4: Loans in nonaccrual status
In millions of U.S. dollars

Borrower
Eritrea

Nonaccrual
sinceRecorded
investment

March 2012$

411

Averagerecorded
investment
$
415

$
$

14
434
859
869

14
439
868
863

Syrian Arab
Republic
June 2012
Zimbabwe
October 2000
Total - September 30, 2023
Total - June 30, 2023

$
$

$

411

Provisionfor debt
relief
$
265

$
$

14
434
859
869

—
—
265
266

Principal
Outstanding$$

Provision
for loanlosses a
$
15
1
217
233
236

$
$

Overdue amounts
Principal

Charges

$

129

$

37

$
$

14
324
467
464

$
$

1
69
107
107

a. Loan loss provisions are determined after taking into account accumulated provision for debt relief.

During the three months ended September 30, 2023 and 2022, no new loans were placed into nonaccrual status.
During the three months ended September 30, 2023, service charge revenue not recognized as a result of loans being
in nonaccrual status was $2 million ($1 million – three months ended September 30, 2022).
During the three months ended September 30, 2023, service charge revenue recognized on loans in nonaccrual status
upon receipt of payment was less than $0.5 million (less than $1 million – three months ended September 30, 2022).
Guarantees
Guarantees of $2,622 million were outstanding as of September 30, 2023 ($2,558 million—June 30, 2023). This
amount includes $870 million relating to the PSW ($795 million—June 30, 2023). The outstanding amount ofguarantees represents the maximum potential undiscounted future payments that IDA could be required to makeunder these guarantees and are not included on the Condensed Balance Sheets. The guarantees issued by IDA haveoriginal maturities ranging between 3 and 22 years and expire in decreasing amounts through 2043.
As of September 30, 2023, liabilities related to IDA’s obligations under guarantees included the obligation to standready of $132 million ($135 million—June 30, 2023), and the accumulated provision for guarantee losses of $214

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)41

million ($177 million—June 30, 2023). These have been included in Other liabilities on the Condensed Balance
Sheets.
During the three months ended September 30, 2023 and 2022, no guarantees provided by IDA to sovereign or subsovereign borrowers were called. During the three months ended September 30, 2023, no IDA-PSW Blended
Finance Facility guarantees under the Small Loan Guarantee Program pursuant to the risk-sharing agreement
between IDA and IFC were called (less than $0.5 million — three months ended September 30, 2022).
Concentration Risk
Loan revenue comprises service charges, interest and commitment charges, net of waivers. For the three months
ended September 30, 2023, loan revenue of $85 million and $67 million from two countries, both in the South Asia
region, were each in excess of ten percent of total loan revenue.
The following table presents IDA’s loans outstanding and associated loan revenue by geographic region:
Table D5: Loan revenue and outstanding loan balances by geographic region
In millions of U.S. dollars

RegionSouth Asia
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
Others b
Total

As of and for the three months ended September 30,
2023
2022
Service andInterest Charges a
$
225
141
137
61
48
16
4
3
$
635

Loans
Outstanding$
61,22554,20841,82918,379
8,882
3,439
2,050
113
$
190,125

Service andInterest Charges a
$
196
117
104
57
30
14
5
1
$
524

Loans
Outstanding$
59,012
47,68935,10618,188
7,330
3,253
2,119
56
$
172,753

a. Excludes $4 million of interest rate swap income from loan-related derivatives for the three months ended September 30, 2023($1 million of interest rate swap expense - three months ended September 30, 2022). Includes net commitment charges of $7
million for the three months ended September 30, 2023 ($7 million – three months ended September 30, 2022).
b. Represents loans under the PSW.

NOTE E—BORROWINGS
IDA’s borrowings comprise market borrowings (carried at amortized cost or fair value) and concessional partner
loans made by IDA members (carried at amortized cost).
IDA uses derivative contracts to manage the currency risk and the interest rate risk in the market borrowings carriedat fair value. For details regarding the derivatives used, see Note F—Derivative Instruments.
As of September 30, 2023, and June 30, 2023, the instruments in IDA’s borrowing portfolio measured at fair value
were classified as Level 2 within the fair value hierarchy. A summary of IDA’s borrowings are as follows (fordetails on principal due upon maturity, see Note J—Fair Value Disclosures):
Table E1: Market borrowings and borrowing-related derivatives, at fair value
In millions of U.S. dollars
Market borrowings
Currency swaps, net
Interest rate swaps, net
Total

September 30, 2023$
17,859679
2,216$
20,754

June 30, 2023
16,786682
2,144$
19,612$For the three months ended September 30, 2023, Borrowing expenses, net in the Condensed Statements of Incomeof $339 million ($146 million—three months ended September 30, 2022) include $193 million of interest expense,42

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)net related to derivatives associated with the Borrowing portfolio (interest expense, net of $42 million— threemonths ended September 30, 2022).
Table E2: Market borrowings outstanding, at amortized cost
In millions of U.S dollars
September 30, 2023
June 30, 2023$$

Principal at face value
8,487
8,682

$
$

Net unamortized discount(53) $(55) $

Total
8,434
8,627

Table E3: Concessional partner loans outstanding, at amortized cost
In millions of U.S dollars
September 30, 2023
June 30, 2023$$

Principal at face value
8,574
8,708

$
$

Net unamortized discount(1,514) $(1,554) $

Total
7,060
7,154

NOTE F—DERIVATIVE INSTRUMENTS
IDA uses derivative instruments in its investment, loan and borrowing portfolios, 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
Risk management purposes:

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 risks

Other assets/liabilities
management

Currency forward contracts, currency swaps andinterest rate swaps

Manage currency and interest rate risks

LoansInterest rate swaps

Manage interest rate risk

Interest rate swaps and currency swaps

Manage currency and interest rate risks

Currency swaps

Assist clients in managing risks

Borrowings
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 the gross and net derivative positions by instrument type. Instruments that are in a
net asset position are included in the Derivative Assets columns and instruments that are in a net liability position
are included in the Derivative Liabilities columns. The gross columns represent the fair value of the instrument leg
that is in an asset or liability position that are then netted with the other leg of the instrument in the gross offset
columns. The effects of the master netting agreements are applied on an aggregate basis to the total derivative asset
and liability positions and are presented net of any cash collateral received on the Condensed Balance Sheets. The
net derivative asset positions in the tables below have been further reduced by any securities received as collateral todisclose IDA’s net exposure on its derivative asset positions.

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)43

Table F2: Derivatives assets and liabilities before and after netting adjustments
In millions of U.S. dollars
September 30, 2023
Derivative Assets

Interest rate swaps
Currency swaps a
Other e
Total
Less:

Gross
Amounts$
4,014
17,715—$21,729Gross
Amounts
Offset$(1,515)(16,654)—$ (18,169)

Derivative Liabilities
Net
Amounts
$
2,499
1,061
—
$
3,560

Amounts subject to legally
enforceable master netting
agreements
Cash collateral received

$

2,149
786

Net derivative positions on
the Condensed Balance
Sheet
Less:
Securities collateral received d

$

625

Gross
Amounts
$
2,810
7,385
1
$
10,196Gross
Amounts
Offset$(594)(6,575)—$(7,169)b

Net
Amounts
$
2,216
810
1
$
3,027

$

2,049

$

978

c

370

Net derivative exposure after
collateral$

255

Table F2.1:
In millions of U.S. dollars
June 30, 2023
Derivative Assets

Interest rate swaps
Currency swaps a
Total
Less:

Gross
Amounts$
3,432
13,107$
16,539Gross
Amounts
Offset$(1,601)(12,251)$ (13,852)

Derivative Liabilities
Net
Amounts
$
1,831
856
$
2,687

Amounts subject to legally
enforceable master netting
agreements
Cash collateral received

$

1,884
439

Net derivative positions on
the Condensed Balance
Sheet
Less:
Securities collateral received

$

364

$

104

$

260

Net derivative exposure after
collateral

Gross
Amounts$
2,763
10,781$
13,544ba. Includes currency forward contracts.
b. Includes $125 million Credit Valuation Adjustment (CVA) ($102 million-June 30, 2023).
c. Includes $25 million Debit Valuation Adjustment (DVA) ($27 million-June 30, 2023).
d. Excludes $21 million of excess collateral received as of September 30, 2023.
e. These include swaptions, exchange traded options, futures contracts and TBA securities.

44

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

Gross
Amounts
Offset$(620)(9,871)$ (10,491)

Net
Amounts
$
2,143
910
$
3,053

$

1,809

$

1,244

c

The following table provides information about the credit risk exposures at fair value, at the instrument level, of
IDA’s derivative instruments.
Table F3: Credit risk exposure of the derivative instruments
In millions of U.S. dollars
September 30, 2023

Investments - Trading
Asset/liability management
Other aTotal Exposure

Interest rate swaps

Currency swaps(including currency
forward contracts)

$

$

$

3
2,355
141
2,499

$

213
848
—
1,061

Total
$

216
3,203
141
3,560

$

Table F3.1
In millions of U.S. dollars
June 30, 2023

Investments - Trading
Asset/liability management
Other aTotal Exposure

Interest rate swaps

Currency swaps(including currency
forward contracts)

$

$

$

5
1,715
111
1,831

$

135
721
—
856

Total
$

$

140
2,436
111
2,687

a. Includes derivatives related to loans and 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. As of September 30, 2023, the notional amounts of IDA's derivative contracts
outstanding were as follows: interest rate swaps $30,562 million ($30,815 million as of June 30, 2023) and currency
swaps $26,775 million ($24,670 million as of June 30, 2023). There were $598 million of long positions and $60
million of short positions pertaining to other derivatives as of September 30, 2023 (Nil as of June 30, 2023).
Collateral: IDA is not required to post collateral under its derivative agreements as long as it maintains a triple-A
credit rating. The aggregate fair value of all derivative instruments with credit-risk related contingent features thatare in a liability position as of September 30, 2023 is $939 million ($1,217 million —June 30, 2023). As of
September 30, 2023, IDA was not required to post any collateral in accordance 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 September 30, 2023, the amount of collateral that would need to be posted would
be $181 million ($349 million—June 30, 2023). Subsequent triggers of contingent features would require posting ofadditional collateral, up to a maximum of $939 million as of September 30, 2023 ($1,217 million—June 30, 2023).

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

45

The gains or losses on the non-trading derivatives, by instrument type and their location in the Condensed
Statements 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
Interest rate swaps
Currency swaps and currency forward contracts
Total

Three Months Ended
September 30,
2023
2022

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

$

668
13
681

$

$
$

(480)
(306)
(786)

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 Statements of Income:Table F5: Unrealized mark-to-market gains or losses on investment trading portfolio
In millions of U.S. dollars

Type of instrument

Fixed income (including related derivatives)Three Months Ended
September 30,
2023
2022

Reported as
Unrealized mark-to-market gains(losses) on Investment-Trading
portfolios, net

$

12

$

(107)

NOTE G—TRANSACTIONS WITH AFFILIATED ORGANIZATIONSIDA transacts with affiliated organizations as a recipient of transfers and grants, administrative and derivativeintermediation services and through cost sharing of IBRD’s sponsored pension and other postretirement benefit
plans.
Transfers and Grants
Cumulative transfers and grants made to IDA as of September 30, 2023 were $20,593 million ($20,593 million—
June 30, 2023). Details by transferor are as follows:
Table G1: Transfers and grants
In millions of U.S dollars
Transfers
Total
Of which transfers from:
IBRD
IFC
Nonaffiliated organizations

Cumulative transfers as of
September 30, 2023$
20,593

During three months ended September 30, 2023, there were no transfers or grants made to IDA.

46

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

16,4783,885
230

Subsequent Event
On October 13, 2023, IBRD's Board of Governors approved a transfer of $291 million to IDA. This transfer wasreceived on October 24, 2023.
Receivables and Payables
The total amounts receivable from (payable to) affiliated organizations is comprised of the following:
Table G2: IDA’s receivables and payables with affiliated organizations
In millions of U.S. dollars

Administrative Services
Post-Retirement Contribution Reserve Fund a
Pension and Other Postretirement Benefits
Derivative (liabilities)/assets, net
PSW-Blended Finance Facility
Investments
Total

September 30, 2023
June 30, 2023
IBRD
IFC
Total
IBRD
IFC
Total
$ (523) $— $ (523) $ (594) $ —
$
(594)
626
—
626
579
—
579
722
—
722
712
—
712
—
(63)
(63)
—
(49) ᵇ
(49)
—
94
94
—
96
96
—
198
198
—
244
244
$ 825 $
229 $ 1,054 $697 $ 291$
988

a. 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 made to the pension plans.
b. Includes other receivable of $4 million related to unsettled Local Currency Facility trades that is included in Other assets on theCondensed Balance Sheets.

The receivables from (payables to) these affiliated organizations are reported on the Condensed Balance Sheets asfollows:
Receivables / Payables related to:
Receivable for pension and other postretirement benefits
Receivable for PCRF
Net receivables (payables) for derivative transactions
Payable for administrative services
Receivable for PSW – Blended Finance Facility
Receivable for Investments

Reported as:
Receivable from affiliated organization
Receivable from affiliated organization
Derivative assets/liabilities, net
Payable to affiliated organization
Other Assets
Investments

Administrative Services
The payable to IBRD represents IDA’s share of joint administrative expenses including contributions to special
programs, net of other revenue jointly earned. The allocation of expenses is based upon an agreed cost sharing
formula, and amounts are settled quarterly.
For the three months ended September 30, 2023, IDA’s share of joint administrative expenses and contributions to
special programs totaled $428 million ($421 million — three months ended September 30, 2022).
Other revenue
Includes IDA’s share of other revenue jointly earned with IBRD during the three months ended September 30, 2023
totaling $60 million ($56 million — three months ended September 30, 2022).

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

47

The amount of fee revenue associated with services provided to other affiliated organizations is included in Other
revenue on the Condensed Statements 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 September 30,
2023
2022
$
22 $
20
2
1

Pension and Other Post-Retirement Benefits: IBRD, along with IFC and Multilateral Investment Guarantee
Agency (MIGA), sponsors a defined benefit Staff Retirement Plan and Trust, a Retired Staff Benefits Plan and Trustand 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.
During the three months ended September 30, 2023, IDA’s share of IBRD’s benefit costs relating to all three plans
totaled $25 million ($41 million — three months ended September 30, 2022).
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: IDA enters into currency forward contracts with IBRD acting as the intermediary with themarket, primarily to convert donors’ expected contributions in national currencies into the five currencies of theSpecial 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 September 30, 2023, the principal amount due on the debt security was$219 million ($262 million—June 30, 2023), and it had a fair value of $198 million ($244 million—June 30, 2023).
The investment is reported under Investments in the Condensed Balance Sheets. During the three months ended
September 30, 2023, IDA recognized interest income of $1 million from this investment ($2 million — three months
ended September 30, 2022).
Private Sector Window (PSW)The PSW was created under the Eighteenth Replenishment of IDA’s Resources (IDA18) to mobilize private sector
investment in IDA-only countries and IDA-eligible Fragile and Conflict-affected Situations. The PSW continued
under IDA’s Twentieth Replenishment of Resources (IDA20), which commenced on July 1, 2022 with an initial
allocation of $2.5 billion. Under the fee arrangement for the PSW, IDA receives fee income for transactions
executed under this window and reimburses IFC and MIGA for the related costs incurred in administering thesetransactions. As of September 30, 2023, the PSW exposures were $1,077 million and the related accumulated
provision was $194 million.

48

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)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
Disbursements (including PPA grant activity) a
Cancellations
Translation adjustment
Balance, end of the period/ fiscal year$

September 30, 2023
3,092

$

(235)
(26)
(31)
2,800

$

June 30, 2023
4,615

$

(1,385)
(141)
3
3,092

a. Project Preparation Advances (PPA).

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

Disbursements for conditional grants a
Disbursements not meeting expense condition b
Cancellations of unconditional grants
Grant Expenses for the period$

Grants Approved$

Three Months Ended September 30,
2023
2022
1,032
$
1,174
(230)
(108)
(26)
(8)
776
$
1,058

$

2,144

$

2,049

a. Disbursements of conditional grants approved on or after July 1, 2019.
b. Disbursements of conditional grants for which the expense recognition criteria has not yet been met.

As of September 30, 2023, the cumulative amount of conditional grants approved but not yet expensed since allconditions have not been met, was $28,441 million. Of this amount, conditional grant advances disbursed but not yet
expensed, of $4,106 million as of September 30, 2023 ($3,887 million – June 30, 2023), are included in Other assets
on the Condensed Balance Sheets.

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 currencytranslation adjustments on functional currencies and DVA on fair value option elected liabilities. These items arepresented in the Condensed Statements of Comprehensive Income.
The following table presents the changes in Accumulated Other Comprehensive Loss (AOCL) and Accumulated
Other Comprehensive Income (AOCI) balances:
Table I1: Changes in AOCL/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$$

Three Months Ended September 30,
2023
2022
(8,946)$(9,152)(1,771)(5,419)(7)—(10,724)$(14,571)

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)49

NOTE J— FAIR VALUE DISCLOSURES
Valuation Methods and Assumptions
As of September 30, 2023 and June 30, 2023, 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 September 30, 2023 and June 30, 2023. IDA’s loans and loan
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. For instruments forwhich 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
observable market inputs such as yield curves, credit spreads, and constant prepayment spreads. 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 carried at fair value is calculated using a discounted cash flow method which
relies on observable market inputs such as yield curves, foreign exchange rates, basis spreads and funding spreads.
As of September 30, 2023 and June 30, 2023, the fair value of borrowings measured at amortized cost would be
calculated using the same methodology as described above for borrowings at fair value and classified as Level 2
within the fair value hierarchy.
Derivative instruments
Derivative contracts include currency forward contracts, TBA securities, swaptions, options and futures contracts,
currency swaps and interest rate swaps. Where available, quoted market prices are used to determine the fair valueof trading securities. Examples include 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 observable market 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 carried at fair value) is measured by revaluingeach liability to determine the changes in fair value of that liability arising from changes in IDA’s cost of funding
applicable to the relevant reference rates.The table below presents IDA’s estimates of fair value of its financial
assets and liabilities along with their respective carrying amounts.

50

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)Table J1: Fair value and carrying amounts of financial assets and liabilities
In millions of U.S dollars

AssetsDue from banks
Investments (including securities purchased under resaleagreements)
Net loans outstanding
Derivative assets, net
Liabilities
Borrowings
Market borrowings, at fair valueMarket borrowings, at amortized value
Concessional partner loans
Securities sold under repurchase agreements, securities
lent under securities lending agreements, and payable
for cash collateral received
Derivative liabilities, net

September 30, 2023
Carrying Value
Fair Value

June 30, 2023
Carrying Value
Fair Value

$

$

529

$

529

689

$

689

31,862
186,144625

31,862
135,814625

31,990187,669364

31,990141,478364

17,8598,434
7,060

17,8596,485
6,198

16,786
8,627
7,154

16,786
6,938
6,698

—

—

221

221

978

978

1,244

1,244

As of September 30, 2023, IDA’s signed loan commitments were $69.1 billion ($68.5 billion — June 30, 2023) andhad a fair value of $(11.1) billion ($(9.7) billion—June 30, 2023).

IDA Quarterly Financial Statements: September 30, 2023 (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 September 30, 2023
Level 1
Level 2
Level 3
Total
Assets:Investments—Trading
Government and agency obligations
Time deposits
ABS
Total Investments—Trading
Investments—Non-trading
Total Investments

$

$

$

12,661
1,492—
14,153—
14,153

Securities purchased under resale agreements$

Derivative assets:
Currency swaps and currency forward contracts
Interest rate swaps

$
$

$

$

8,200
9,107
95
17,402
198
17,600

—

$

—
—
—

$
$

$

$

—
—
—
—
—
—

$

20,861
10,59995
31,555198
31,753

109

$

—

$

109

1,061
2,499
3,560

$

—
—
—

$
$

1,061
2,499
3,560

$

2,149
786
625

$

Less:
Amounts subject to legally enforceable master netting agreements a
Cash collateral received
Derivative assets, net
Liabilities:
Market Borrowings, at fair value

$

—

$

17,859$—$17,859Securities sold under repurchase agreements, securities lent under
securities lending agreements, and payable for cash collateral
received c

$

—

$

—

$

—

$

—

$

—
—
1

$

810
2,216
—

$

—
—
—

$

810
2,216
1

$

1

$

3,026

$

—

$

3,027

$

2,049
978

Derivative liabilities:
Currency swaps and currency forward contracts
Interest rate swaps
Other dLess:
Amounts subject to legally enforceable master netting agreements b
Derivative liabilities, net

a. Includes $125 million CVA.
b. Includes $25 million DVA.
c. Excludes amount payable for cash collateral received of $786 million.
d. These relate to TBA Securities, swaptions, exchange traded options and futures contracts.

52

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)Table J2.1
In millions of U.S. dollars
Fair Value Measurements on a Recurring Basis
As of June 30, 2023
Level 1
Level 2
Level 3
Total
Assets:Investments—Trading
Government and agency obligations
Time deposits
ABS
Total Investments—Trading
Investments—Non-trading
Total Investments

$

$

$

11,037792—
11,829—11,829Securities purchased under resale agreements$

Derivative assets:
Currency swaps and currency forward contracts
Interest rate swaps

$
$

$

$

8,733
10,911
105
19,749244
19,993

—

$

—
—
—

$
$

$

$

—
—
—
—
—
—

$

19,77011,703105
31,578244
31,822

168

$

—

$

168

856
1,831
2,687

$

—
—
—

$
$

856
1,831
2,687

$

1,884
439
364

$

Less:
Amounts subject to legally enforceable master netting agreements a
Cash collateral received
Derivative assets, net
Liabilities:
Market Borrowings, at fair value

$

—

$

16,786$—$

16,786

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

$

—

$

221

$

—

$

221

$

—
—
—

$

910
2,143
3,053

$

—
—
—

$
$

910
2,143
3,053

$

1,809
1,244

Derivative liabilities:
Currency swaps and currency forward contracts
Interest rate swaps

$

$

$

Less:
Amounts subject to legally enforceable master netting agreements b
Derivative liabilities, net
a. Includes $102 million CVA.
b. Includes $27 million DVA.
c. Excludes amount payable for cash collateral received of $439 million.

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 security
In millions of U.S dollars
Fair value
September 30, 2023
June 30, 2023

$
$

198
244

$
$

Principal amount due
219
262

Difference$$

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)

(21)
(18)

53

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

September 30, 2023
June 30, 2023$$

Principal Due Upon
Maturity$
20,270$19,259Fair Value
17,85916,786$$

Difference(2,411)(2,473)

During the three months ended September 30, 2023, IDA recorded unrealized mark-to-market losses of $7 million(less than $0.5 million gains – three months ended September 30, 2022) in Other Comprehensive Income, in relation
to the changes in its own credit (DVA) on fair value option elected liabilities (market borrowings).
As of September 30, 2023, IDA’s Condensed Balance Sheets included a DVA of $38 million cumulative loss ($31
million cumulative loss—June 30, 2023) in Accumulated other comprehensive income, associated with the changes
in IDA’s own credit for its market borrowings reported at fair value.
The following tables reflect 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
Other Non-trading portfolios
Investment portfolio—Note C
Borrowing portfolio—Note E
Other b
Total

Three Months Ended September 30,
2023
Unrealized
gains(losses)
Realized
Unrealized
excluding
gains
gains
realizeda(losses)amounts(losses)$(57) $
69 $
12

$

—

628

—
—
—
—

$

Three Months Ended September 30,
2022
Unrealized
gains(losses)
Realized
Unrealized
excluding
gains
gains
realizeda(losses)amounts(losses)$
55 $(162) $
(107)

628

—

27

27

(2)

(2)

—
30
656

—
30
656

—
—
—
—

(8)
1
7
27 $

(8)
1
7
27

$

$

$

a. Adjusted to exclude amounts reclassified to realized gains/losses.
b. Other comprises mark-to-market gains or losses on the loan portfolio and on PSW.

NOTE K—CONTINGENCIES
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 three months ended September 30, 2023, is not expected to have a material adverse
effect on IDA's financial position, results of operations or cash flows.

54

IDA Quarterly Financial Statements: September 30, 2023 (Unaudited)INDEPENDENT AUDITOR'S REVIEW REPORT55

56