Treasury International Programs

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Table of Contents

U.S. Department of the Treasury 

International Programs 

Congressional Justification for Appropriations 

FY 2021 

FY 2021 Executive Summary............................................................................................................. 2

International Monetary Fund ........................................................................................................... 6

Multilateral Development Banks..................................................................................................... 9

World Bank Group................................................................................................................................ 9

International Bank for Reconstruction and Development ..................................................................... 9

International Development Association ...................................................................................................... 13

International Finance Corporation ................................................................................................................ 16

African Development Bank Group ................................................................................................19

African Development Bank ............................................................................................................................... 19

African Development Fund ............................................................................................................................... 22

Asian Development Bank .................................................................................................................25

Asian Development Fund ................................................................................................................................... 25

North American Development Bank ............................................................................................28

Environmental Trust Funds ............................................................................................................30

Global Environment Facility ............................................................................................................................. 30

Technical Assistance..........................................................................................................................32

Office of Technical Assistance .......................................................................................................................... 32

Debt Restructuring Programs.........................................................................................................35

Heavily Indebted Poor Countries Initiative ............................................................................................... 35

Annex 1: MDB Basics..........................................................................................................................36

Annex 2: FY 2021 Appropriations Language and Authorization Request ......................39
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FY 2021 Executive Summary

The Administration’s FY 2021 Budget requests $1.59 billion for Treasury Department 

International Programs in FY 2021. In recognition of the Administration’s prioritization of 

national defense and security as well as a streamlined Federal Government that makes the best 

possible use of taxpayer dollars, the Budget supports critical investments in international 

financial institutions and debt relief, while ensuring that U.S. contributions are set at an 

appropriate level relative to our partner countries. These investments by Treasury’s International 

Programs strengthen U.S. national security, economic growth, and influence by advancing a 

more secure, economically prosperous, and democratic world. In recent years, Treasury has 

driven shareholder support for the implementation of key reforms at the multilateral development 

banks (MDBs) aimed at improving governance, development effectiveness, and financial 

discipline, and Treasury continues to pursue additional major reforms at several of the 

institutions. These include improving monitoring and evaluation, strengthening independent 

compliance functions, adopting mechanisms to improve financial sustainability, and increasing 

the allocation of lending to the world’s poorest countries. 

International Monetary Fund – New Arrangements to Borrow

The Administration requests authorization to extend U.S. participation in the International 

Monetary Fund’s (IMF) New Arrangements to Borrow (NAB) from December 16, 2022, the date 

when the current congressional authorization expires, until December 31, 2025 and to increase 

U.S. participation in the NAB from $39 to $78 billion. The terms of the NAB require the IMF to 

approve an extension at least one year prior to its current expiration date of November 16, 2022. 

U.S. participation in the NAB is an exchange of monetary assets and consequently does not 

result in any budgetary outlays. The request includes the necessary legislative language in the 

General Provisions found in the Department of State and Other International Programs chapter of 

the FY 2021 President’s Budget Appendix. 

Multilateral Development Banks 

The FY 2021 Budget requests $1.48 billion for the MDBs. The MDBs play key roles in the 

effort to increase global economic growth and reduce poverty, which advances U.S. foreign 

policy objectives of sustaining peace and stability, promoting security, and combatting terrorism. 

International Bank for Reconstruction and Development (IBRD): $206.5 million towards the 

second of up to six installments for the IBRD general and selective capital increases. 

International Development Association (IDA): $1,001.4 million in support of IDA programs 

over the nineteenth replenishment (IDA-19; World Bank FY 2021 – FY 2023), including 

towards the first of three installments to IDA-19. 

International Finance Corporation (IFC): No funding is requested in FY 2021. The 

Administration requests authorization to vote in favor of resolutions to allow other shareholders 

to contribute additional capital, while preserving U.S. veto power over future capital increases. 
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African Development Bank (AfDB): $54.6 million for the first of eight installments to subscribe 

to the United States’ share of the paid-in portion of the seventh general capital increase. 

African Development Fund (AfDF): $171.3 million in support of AfDF programs over the 

fifteenth replenishment period (AfDF-15; AfDB FY 2020 – FY 2022), including towards the first 

of three installments to AfDF-15. 

Asian Development Fund (AsDF): $47.4 million in support of AsDF programs over the eleventh 

replenishment (AsDF-12; FY 2018 – FY 2021), including towards the fourth of four installments 

to AsDF-12. 

North American Development Bank (NADB): The FY 2021 Budget requests “program limitation 

language” to allow the Secretary of the Treasury to subscribe to the full amount of $1.275 billion 

in callable capital shares that Congress authorized under the United States-Mexico-Canada 

Agreement Implementation Act (USMCA Act). The Budget is not requesting new funding for 

NADB in FY 2021. 

Environmental Trust Funds 

The FY 2021 Budget requests no funding for environmental trust funds in FY 2021. 

Global Environment Facility (GEF): While the GEF remains a priority, no funding is requested 

in FY 2021 since FY 2019 and FY 2020 appropriations place the United States on track to meet 

its pledge of $273.2 million to the GEF seventh replenishment (GEF-7; FY 2019 – FY 2022). 

Technical Assistance – Office of Technical Assistance 

The FY 2021 Budget requests $33 million for Treasury’s Office of Technical Assistance (OTA). 

This includes $3 million in additional resources to strengthen the program’s monitoring and 

evaluation system in accordance with the Foreign Aid Transparency and Accountability Act. 

Funding will help ensure that OTA is able to respond quickly and sustainably to growing 

demand for technical assistance in areas that are priorities for the United States. Such areas 

include: supporting our national security agenda by combating terrorist financing and financial 

crimes, reducing countries’ dependence on foreign financial aid through improved domestic 

resource mobilization, and creating the conditions for private sector-led economic growth. This 

consists of improving the climate for private sector investment in infrastructure projects in 

developing and transitional countries. 

Debt Restructuring – Heavily Indebted Poor Countries (HIPC) Initiative 

The FY 2021 Budget requests $78 million for bilateral debt restructuring and relief in support of 

the HIPC Initiative. 

Somalia Debt Relief through Heavily Indebted Poor Countries (HIPC) Initiative: $78 million to 

support U.S. bilateral debt restructuring and relief for Somalia as part of the HIPC Initiative.

 
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 FY 2019 FY 2020 FY 2021

Enacted Enacted Request $ Change % Change

Multilateral Development Banks (MDBs) 1,348,122,159 1,522,205,000 1,481,243,752 -40,961,248 -2.7%

 International Development Association (IDA) 1,097,010,000 1,097,010,000 1,001,400,000 -95,610,000 -8.7%

 Int'l Bank for Reconstruction and Development (IBRD) 0 206,500,000 206,500,000 0 0.0%

 African Development Fund (AfDF) 171,300,000 171,300,000 171,300,000 0 0.0%

 African Development Bank (AfDB) 32,417,159 0 54,648,752 54,648,752 NA

 Asian Development Fund (AsDF) 47,395,000 47,395,000 47,395,000 0 0.0%

Food Security 30,000,000 30,000,000 0 -30,000,000 -100.0%

 Int'l Fund for Agricultural Development (IFAD) 30,000,000 30,000,000 0 -30,000,000 -100.0%

Environmental Trust Funds 139,575,000 139,575,000 0 -139,575,000 -100.0%

 Global Environment Facility (GEF) 139,575,000 139,575,000 0 -139,575,000 -100.0%

Treasury Office of Technical Assistance (OTA) 30,000,000 30,000,000 33,000,000 3,000,000 10.0%

Debt Restructuring 0 15,000,000 78,000,000 63,000,000 420.0%

 Highly Indebted Poor Countries Initiative 0 0 78,000,000 78,000,000 NA

 Tropical Forest Conservation Act 0 15,000,000 0 -15,000,000 -100.0%

TOTAL 1,547,697,159 1,736,780,000 1,592,243,752 -144,536,248 -8.3%

Note: The 2021 Administration proposal to extend and increase U.S. participation in the IMF’s New Arrangements to Borrow acknowledges that U.S. participation in the 

NAB is an exchange of monetary assets and does not result in budgetary outlays. The request includes the necessary legislative language in the General Provisions found in 

the Department of State and Other International Programs chapter of the FY 2021 President’s Budget Appendix. 

Summary Tables

Summary of Appropriations and Request

Treasury International Programs

FY 2019 – FY 2021

(in dollars)

FY 2020 to FY 2021
Treasur

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MDB

FY 2014

Enacted2

FY 2015

Enacted2

FY 2016

Enacted

FY 2017

Enacted

FY 2018

Enacted

FY 2019

Enacted

FY 2020

Estimate3

FY 2021

Request4

IDA Core 434,315 436,982 530,321 620,534 485,264 485,264 485,264 485,264IDA MDRI 78,825 256,655 444,615 643,845 822,665 1,006,855 1,236,345 1,503,865IBRD 5,964 5,963 5,963MIGA 6,867 6,867 6,867 6,867 6,867 6,867 6,867 6,867AfDF Core 146,018 162,350 178,682 178,682 156,169 156,169 156,169 156,169AfDF MDRI 40,449 61,585 83,941 112,067 134,377 157,904 172,014 196,711AfDB 1,700 1,700AsDF 326,701 310,501 294,653 284,739 283,943 283,943 283,943 283,943AsDB 5,609 5,608IDB 21,952 21,952 21,940MIF 29,088 25,710 25,710 25,710 25,710 25,710 25,710 25,710IFAD 5,763 5,763 3,833 3,833 3,833 3,833 3,833 3,833GEF 247,894 211,964 180,264 170,264 134,966 131,951 128,939 128,939TOTAL 1,351,144 1,513,600 1,776,789 2,046,540 2,053,793 2,258,495 2,499,084 2,791,301TOTAL (ex MDRI) 1,231,870 1,195,360 1,248,233 1,290,628 1,096,751 1,093,737 1,090,725 1,090,725

Unmet Commitments to Multilateral Development Banks1

(in thousands of US dollars)

1 Unmet commitments represent the di fference between the amount of resources that the United States pledged and was authorized to contribute to an MDB, through

previous replenishment or capital increase negotiations, and the amount of resources that the United States has actually provided. The level of unmet commitments is

influenced by annual appropriations and any credits that the United States earns from early encashment of contributions to an MDB replenishment.

2 The "enacted" column includes the amount of unmet commitments that the United States had with MDBs after the United States made contributions as provided for in

annual appropriations acts and includes any early encashment credits earned by the United States.

3 This column notes the estimated level at which unmet commitments will stand after the United States makes congressionally appropriated contributions. It does not

take into account any early encashment credits that the U.S. might earn.

4 The "requested" column includes the levels at which Treasury projects U.S. unmet commitments will stand if Congress appropriates funding at the levels requested in

the President's FY 2021 Budget.
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International Monetary Fund

New Arrangements to Borrow

The International Monetary Fund (IMF) is responsible for promoting the stability of the 

international monetary and financial system. Through its three main activities—surveillance, 

technical assistance, and lending—the IMF promotes economic stability and helps prevent and 

resolve financial crises when they occur, thereby supporting growth and stability around the 

world. The United States was instrumental in creating the IMF and remains the member with the 

largest voting share. As the only country with veto power over major IMF decisions, the United 

States uses its influence to shape the IMF’s activities in ways that enhance global financial 

stability along with our economic and national security interests. 

The primary source of IMF lending resources is the quota subscriptions held by its members. 

The IMF reviews its quota subscriptions every five years. The IMF has two other pools of 

resources that can be used when needed. The New Arrangements to Borrow (NAB), estimated at 

$250 billion, is a multilateral borrowing arrangement with 40 member countries, including the 

United States. The United States’ participation in the NAB is estimated at $39 billion, and the 

United States has a veto over the activation of the NAB or any major changes to its terms or size. 

U.S. Congressional authority for the NAB expires on December 16, 2022, but the IMF Executive 

Board must renew the NAB by November 2021, one year prior to its current expiration date of 

November 16, 2022. 

The IMF also has a series of bilateral borrowing arrangements with 40 countries, not including 

the United States, totaling $440 billion. These arrangements will expire in 2020 if not renewed. 

If the NAB and bilateral borrowing arrangements were to expire on schedule, without further 

action, overall IMF resources would decline from about $1.4 trillion to about $650 billion. 

In 2019, the United States joined other key countries and IMF leadership in advancing a package 

of actions on IMF resources and reforms designed to strengthen and define the IMF’s role within 

the international financial system. On January 16, 2020, the IMF Executive Board approved a 

package that: (1) closed the IMF’s current quota review without changes to existing member 

quota subscriptions; (2) maintained the IMF’s overall resources by renewing and expanding the 

size of the NAB by $250 billion while reducing the IMF’s bilateral borrowing agreements by a 

similar amount; and (3) preserved U.S. veto power over the IMF’s sources of lending. This 

resource package was accompanied by a series of IMF reforms, including modernization of IMF 

staff compensation and benefits (approved by the Executive Board in December 2019), reforms 

to streamline lending conditions, and measures to enhance debt transparency and sustainability. 

In 2020, the United States will press for further reforms to the IMF’s policies on debt 

sustainability and will engage with the IMF to upgrade its enterprise risk management. 

The Budget proposes authorization language to extend U.S. participation in the NAB until 

December 31, 2025 and increase U.S. participation in the NAB from 28,202,470,000 Special 
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Drawing Rights (SDR) (approximately $39 billion at current exchange rates) to 56,404,940,000 

SDR (approximately $78 billion at current exchange rates). 

Extending and increasing U.S. participation in the NAB is necessary to prevent a loss of U.S. 

influence in the IMF and to maintain our ability to shape the global norms and rules that 

protect U.S. interests. 

By increasing U.S. participation in the NAB, the United States achieves two goals: maintaining 

overall IMF resources at their current, adequate level and securing our veto over the ability of the 

IMF to access backstop resources. The U.S. share in the larger NAB will remain at 15.5%, thus 

allowing us to retain our veto over the activation of the NAB. In addition, the revised NAB 

Agreement includes language that confirms bilateral borrowing can only be tapped if the NAB is 

activated or if there are no available, uncommitted resources in the NAB. In the absence of a 

NAB increase, the IMF would likely turn to bilateral creditors—such as China and other 

emerging markets—to request an increase in resources. Increased IMF reliance on bilateral 

resources would diminish U.S. control over IMF lending decisions in a crisis. 

As a part of negotiations to increase the NAB, the IMF has advanced significant reforms to 

modernize its institutional framework and engage in key U.S. priorities.

The IMF has long provided an overly generous and outdated system of compensation and 

expatriate benefits for its staff. During the IMF’s year-long review of compensation and 

benefits, the United States worked closely and regularly with other major shareholders to pass a 

package of reforms that achieved many new efficiencies. Examples of specific reforms include: 

reducing the rate of future increases in compensation to better align with the rate of U.S. 

inflation; flattening pay increases for senior-level employees; reducing incidental allowances for 

home leave and simplifying the administration of home leave benefits; and eliminating postsecondary education benefits for new hires. Total cost savings are projected to reach $10.5 

million per year once all changes are fully implemented. 

The United States has also emphasized the need for greater focus by the IMF on raising real 

median incomes, pursuing economic reform that prioritizes economic growth, and strengthening 

debt transparency and sustainability among IMF members, and particularly in countries under 

IMF programs with formal conditionality. As a result, the IMF recently adjusted its framework 

for loan conditions to help ensure streamlined conditionality that prioritizes a narrow set of 

reforms with a greater focus on growth-enhancing policies. U.S. engagement has also resulted in 

IMF programs that require greater transparency of lending by emerging creditors and, in cases 

where a debt restructuring is necessary, helps ensure countries like China take on their fair share 

of the cost. 

An effective IMF is a good deal for America, for the near-term health of the U.S. economy, for 

the prosperity of American workers, and for our strategic interests. 

Since its creation in 1944, the IMF has played a central role in the international financial system 

and has strongly supported U.S. national interests. The IMF promotes economic stability and 

helps prevent and resolve financial crises when they occur, thereby supporting growth and 
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stability around the world. The United States holds the largest voting share in the IMF at16.5%, 

making us the only country with veto power over major IMF decisions and providing us with a 

great deal of influence within the IMF. This leadership position has allowed us to influence key 

policy and lending decisions of the IMF. 

The IMF has played a key role in protecting U.S. national economic and security interests: 

 Serving as the world’s first responder in a financial crisis by providing financial support 

conditioned on key economic reforms and hands-on policy advice; 

 Supporting major trading partners such as Mexico with financial backstops; 

 Reviewing countries’ exchange rate policies to make the global system more fair; and 

 Assessing countries’ compliance with the Financial Action Task Force’s (FATF) 

standards on terrorist financing and money laundering to help ensure financial sector 

stability. 

The IMF also provides support and policy advice for major U.S. partners such as Jordan and 

Ukraine, to help stabilize their fragile economies and allow governments to focus on counterterrorism cooperation and combating radical extremism. IMF lending to Jordan, for example, 

provides the resources and a policy framework, conditioned on reforms that the government must 

take to address underlying economic issues, boost growth, and protect the poor. 
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Multilateral Development Banks

World Bank Group

The World Bank Group (WBG) is comprised of the International Development Association 

(IDA), the International Bank for Reconstruction and Development (IBRD), the International 

Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the 

International Centre for Settlement of Investment Disputes (ICSID). The Budget is seeking 

funding for the first of three installments under IDA’s nineteenth replenishment (IDA-19) and 

for the second payment for the IBRD general and selective capital increases agreed in 2018. No 

funding is required to implement the IFC capital increase agreed in 2018, but the Administration 

is requesting authorization to vote in favor of resolutions to allow other shareholders to 

contribute capital, while preserving U.S. veto power over future capital increases. 

International Bank for Reconstruction and Development

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

- $206,500,000 $206,500,000 

Treasury requests $206.5 million for the International Bank for Reconstruction and Development 

(IBRD) for the second of six installments for the IBRD general (GCI) and selective (SCI) capital 

increases agreed to in 2018. If not paid, the United States will not be able to subscribe to the full 

amount of shares to which it is entitled, which would result in a loss of U.S. shareholding and 

voting power. It would also undermine U.S. leadership in the institution. 

Program Description

The IBRD is the arm of the WBG that provides financing to creditworthy lower-middle and 

middle-income countries to promote broad economic growth and reduce poverty. These 

countries—home to over 70% of the world’s poor and 5 billion of the world’s 7.7 billion 

people—utilize the combination of the IBRD’s financial resources and strategic advice to meet 

many development needs. 

The work of the IBRD is essential for the World Bank to achieve its Twin Goals by 2030: (1) to 

decrease extreme poverty to no more than 3% globally; and (2) to promote shared prosperity by 

fostering income growth among the poorest 40%. IBRD projects reach across a range of sectors, 

including governance, agriculture, sustainable infrastructure, health and nutrition, and education. 

The IBRD supports long-term human and social development needs that private creditors are 

often unwilling to finance. During the World Bank’s 2019 fiscal year (July 1, 2018 to June 30, 

2019), the IBRD approved $23.1 billion in loans and technical assistance. Latin America and the 

Caribbean received the largest portion of the IBRD’s new lending (24.6%), followed by the 

Middle East and North Africa (21%). 
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The IBRD raises resources similar to a conventional bank by issuing debt and on-lending to 

borrowers at market-linked rates. This model enables the IBRD to provide significantly more 

capital than if donor countries were to directly provide grant development assistance. In 2018, in 

response to significant demand among developing countries and the global community to address 

pressing development challenges, shareholders committed to provide additional capital to the 

IBRD. 

The United States is the largest shareholder in the IBRD, with a 15.45% share of total voting 

power, followed by Japan and China. The United States is the only country with veto power 

over amendments to the IBRD Articles of Agreement. 

How IBRD Promotes U.S. Interests

The IBRD is the largest development bank in the world and is uniquely positioned to address 

development challenges in specific countries and key global concerns that impact U.S. national 

security and economic growth. 

 The IBRD provides economic stability for strategically important countries, such as 

Jordan, Iraq, Ukraine, Indonesia, Egypt, Colombia, and others, by providing a less 

expensive source of funds to support their overall external financing.

 The IBRD is an important vehicle for U.S. foreign policy priorities in areas like women’s 

economic empowerment, youth education and job training, and reducing violent 

extremism. 

 The IBRD works with borrower countries to pursue pro-growth economic reforms that 

encourage private sector investment and job creation, as well as expand vital public 

services in health, education, and sanitation. 

 By leveraging international bond markets and funds of other shareholders, the IBRD 

allows the United States to achieve development goals beyond what it could do on a 

bilateral basis. 

 IBRD investment promotes transparency and high standards for procurement, debt 

sustainability, and social and environmental safeguards.

In in the context of negotiations on the 2018 capital increase package, IBRD management 

committed to a series of reforms to improve the efficiency and effectiveness of the institution. 

These reforms closely align with U.S. national security and economic priorities and are making the 

World Bank more financially-disciplined, getting it to focus its operations in poorer countries with 

less access to other sources of finance, and ensuring that it operates more efficiently. 

As part of the IBRD reform package, IBRD has adopted a financial sustainability framework that 

restricts annual lending commitments to those that can be sustained, in real terms, over a rolling tenyear horizon through organic capital accumulation alone. This framework also includes a capital 

buffer to allow the IBRD to respond to crises without jeopardizing its financial position. The 

framework increases the transparency and financial discipline of the IBRD and significantly lessens 

the likelihood of a future capital increase. 
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In order to direct more resources to countries where scarce development resources are needed most, 

the World Bank has instituted a policy that requires it to increase its share of annual lending to 

countries below the IBRD’s graduation discussion income threshold to 70% (from an FY 2017 level 

of 60%). The IBRD has also introduced differentiated loan prices, making it the first multilateral 

development bank to charge higher loan prices for non-concessional lending to wealthier countries. 

This practice incentivizes wealthier countries to borrow from markets rather than the IBRD. 

The IBRD will approach its graduation policy more rigorously. For all countries above the 

graduation discussion income threshold ($6,975 gross national income per capita for the World 

Bank’s FY 2019), new Country Partnership Frameworks (CPFs) are to focus primarily on the 

development gaps preventing the country from graduating and to use less IBRD lending over the 

course of the CPF. 

Finally, the reform and capital package introduced constraints on World Bank staff salaries— the 

largest driver of increases in the administrative budget. These reforms are helping to ensure a more 

efficient use of IBRD funds, which is important for a public institution whose purpose is to 

eliminate global poverty. 

Meeting IBRD Commitments

Without continuing to provide funds for the U.S. portion of the GCI and SCI, the United States 

will risk losing IBRD shareholding, which determines voting power. This loss of shareholding 

could lead to a loss of U.S. leadership and influence at the World Bank, including, potentially, a 

loss of U.S. veto power over amendments to the Articles of Agreement. It would also severely 

undermine progress on the transformative package of reforms that the United States was 

instrumental in securing as part of the capital increase package. 

Achieving and Measuring Results

Over its FY 2019, the World Bank, including the IBRD, achieved the following: 

 Provided 13.1 million people with access to clean water and 172 million people with 

improved sanitation services; 

 Provided 161 million people with essential health and nutrition services; 

 Completed 24 large-scale learning assessments for primary and secondary school systems 

to improve learning outcomes; 

 Helped 73 countries institutionalize disaster risk reduction in national plans; 

 Created new or improved electricity services to 19 million people; and

 Enhanced access to transportation services for 40.4 million people. 

Project Examples

Indonesia. Two of the four main causes for mortality of children under five in Indonesia – 

diarrhea and typhoid – are caused by fecal borne illnesses linked to inadequate water supply and 

sanitation services to remove human waste. Completed in 2018, the Third Water Supply and 

Sanitation for Low Income Communities project was supported by a $99 million IBRD loan and 
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sought to reduce childhood mortality by improving access to water and sanitation services in 

over 22,961 villages. The project improved access to water for 17.2 million people, exceeding 

the project target of 16 million. It also provided 15.4 million people with basic and improved 

sanitation. Surveys indicated that 68% the targeted villages had adopted improved hygiene 

standards and 81% of targeted schools improved their sanitation facilities and hygiene programs. 

Egypt. Approved in June 2018, the $530 million Transforming Egypt’s Healthcare System 

project will support growth and prosperity by financing efforts to improve Egypt’s healthcare 

system and build human capital. It will benefit 55 million Egyptians over 5 years by improving 

600 primary healthcare facilities and 27 hospitals; scaling up community health programs, 

including by hiring 500 female doctors and training 2,800 community health workers; screening 

53 million citizens and residents for Hepatitis C, non-communicable diseases, and other risk 

factors; and by treating 2.2 million Hepatitis C patients. The project will also screen 1 million 

units of blood annually to ensure that they are ready for use in the national blood repository. 

 
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International Development Association

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

1,097,010,000 1,097,010,000 1,001,400,000 

The Budget requests $1,001.4 million in support of IDA programs over the IDA-19 period (FY 

2021 – FY 2023), including towards the first of three installments to IDA-19. 

Program Description

IDA is the arm of the WBG that makes concessional loans and grants to the world’s 73 poorest 

and most vulnerable countries, of which 32 are considered fragile and conflict affected states. It 

is the largest source of development finance to these countries and operates across a range of 

sectors, including health, primary education, clean water and sanitation, governance, 

infrastructure, and business climate. During the World Bank’s fiscal year 2019 (July 1, 2018 to 

June 30, 2019), IDA supported 268 projects totaling $22.3 billion. The largest share of financing 

goes to sub-Saharan Africa ($14.1 billion in World Bank FY 2019) and South Asia ($4.8 billion 

in World Bank FY 2019). 

 IDA requires replenishments of resources every three years to continue its activities. 

IDA’s most recent replenishment (IDA-19) was finalized in December 2019 and will 

allow IDA to make new development commitments of up to $82 billion over three 

years—a $7 billion increase over the previous replenishment (a 3% increase in real 

terms). IDA continues to leverage future reflows (equity) by borrowing from markets. 

IDA is in the process of exploring legal modalities for issuing debt to U.S. investors. 

 The United States achieved important policy commitments during the IDA-19 

negotiations, including on the financing program and reforms. The IDA-19 replenishment 

will emphasize themes that support U.S. priorities – jobs and economic transformation; 

improving governance; women’s economic empowerment; and addressing fragility, 

conflict, and violence. IDA’s focus on better governance, reducing the causes of fragility 

and conflict, improving private sector investment environments, and increasing women’s 

participation in the economy are aligned with U.S. national security and development 

strategies. 

 IDA will implement a new Sustainable Development Finance Policy (SDFP), which will 

better incentivize sound debt management and transparency. Debt sustainability and 

transparency among low-income countries is a top priority for the United States and our 

key allies. Countries that are able to make more informed and transparent borrowing 

decisions are less likely to take on unsustainable debt that endangers future growth 

prospects or debt that creates dependence on any particular foreign state, including China 

and other U.S. competitors. 
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 The United States pledged $3,004.2 million over three years towards the IDA-19 

replenishment. The United States remains the largest IDA donor historically and holds 

the largest voting share. 

 Is cost-effective: every $1 contribution from the United States to IDA-19 will leverages 

$27 in additional resources – contributions from other donors, internally generated 

resources (e.g. reflows from previous loans), and market financing. 

How IDA Promotes U.S. Interests

The economic development of the world’s poorest countries is an important pillar of U.S. national 

security. IDA supports U.S. economic and national security interests by: 

 Reinforcing U.S. and international political and security objectives through economic 

growth, job creation, and the provision of social services in fragile and conflict-affected 

countries. 

 

 Advancing reforms that promote private investment, create jobs, and foster market-led 

economic growth in developing countries, thereby expanding markets for U.S. exports. 

 Responding to and limiting the spread of global crises, for example, by providing support 

to countries affected by famine and health emergencies. 

Meeting IDA Commitments

U.S. unmet commitments to IDA replenishments and IDA’s Multilateral Debt Relief Initiative 

(MDRI) amount to approximately $1.72 billion ($485.3 million for IDA replenishments and 

$1.24 billion for IDA MDRI) in FY 2020. Failing to meet commitments to IDA and MDRI 

reduces IDA’s ability to provide loans and grants. Unmet commitments to IDA also damage 

U.S. credibility and undermine IDA’s ability to deliver on policy goals sought by the United 

States during the IDA-19 replenishment negotiations, such as a sharper focus on fragile states or 

efforts to increase debt sustainability among IDA recipients. 

A significant share of the U.S. unmet commitments to IDA are accrued through MDRI. 

Launched in 2006 at the urging of the United States, MDRI provided 100% cancellation of 

eligible debt to IDA for countries that completed the conditions for debt relief under the Heavily 

Indebted Poor Countries (HIPC) Initiative. MDRI has allowed scarce resources in low-income 

countries to be reallocated for poverty-reducing expenditures in areas such as health and 

education. To prevent a depletion of IDA resources from debt relief, donors committed to 

compensate IDA for the cancelled debt on a dollar-for-dollar basis. 

Full funding of the FY 2021 Budget request for IDA will prevent the accumulation of new unmet 

commitments on our IDA replenishment pledges. U.S. unmet commitments to MDRI will, 

however, increase in 2021 by approximately $267.52 million. The U.S. share of the cost of 

MDRI during the IDA-19 period is $878.8 million. 
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Achieving and Measuring Results

Since the start of IDA-18 (World Bank FY 2018 – FY 2019), IDA reports achieving the 

following: 

 Provided 172 million people with essential health services; 

 Immunized 73 million children; 

 Provided access to better water services for 24 million people and 19 million people with 

improved sanitation systems; 

 Delivered new or improved energy connections to 22 million people; 

 Recruited or trained more than 5.4 million teachers; and 

 Created job opportunities for 15 million people through job-focused interventions. 

In 2002, IDA adopted its Results Measurement System (RMS), an online scorecard that is 

updated annually and provides a snapshot of IDA’s performance and results across countries. 

IDA was the first multilateral development institution to use a framework with quantitative 

indicators to monitor results and performance. This approach has since been emulated by other 

development institutions. As part of the IDA-19 replenishment, the United States and other 

donors supported enhancements to the IDA RMS to ensure data quality, efficiency, and gender 

disaggregation. 

The World Bank’s Independent Evaluation Group (IEG) measures the results of a completed 

IDA project against the indicators that the project set out to achieve. The IEG assigns ratings to 

completed projects based on the achievement of the projects’ intended outcomes and 

development objectives. Of IDA projects completed during the World Bank’s FY 2016 to 2018, 

IEG rated 81% with outcome ratings of “moderately satisfactory” or above. 

Project Examples

Burkina Faso. The Social Safety Nets Project for Burkina Faso Project has helped create the 

foundations of a social safety system that is able to provide basic services for the poorest 

households. The World Bank started the project in 2014 with a $50 million IDA grant. As of 

October 2019, the project has provided direct support to 568,200 people, of which 53% are 

women. Project components include, setting up a cash transfer system, reforms to improve 

targeting of the poorest households and mitigate misuse of funds, and a rigorous impact 

evaluation. After successful implementation for five years, the World Bank expanded the project 

to additional regions in 2019. 

Nepal. The $80 million Livestock Sector Innovation Project seeks to increase productivity and 

increase incomes of small-hold farmers and small agricultural businesses in Nepal. By the end 

of in 2023, the project aims to increase sales values by 30% in all targeted livestock sectors 

through farmer training programs, moving production up the value chain, and improving inputs. 

Approved in 2017, the project has already supported 33.3 million farmers with direct support to 

through provision of improved inputs and services, and enhanced the ability of government 

agencies to enforce regulations to protect the livestock sector. 

 
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International Finance Corporation

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

- - - 

No funding is required for the International Finance Corporation (IFC) general and selective 

capital increases agreed in 2018. However, the Budget is requesting authorization to vote in 

favor of four resolutions to allow other shareholders to contribute additional capital while 

preserving U.S. veto power over future capital increases. The resolutions will: (1) authorize a 

general capital increase; (2) authorize a selective capital increase; (3) convert a portion of the 

IFC’s retained earnings to paid-in capital stock, which will result in the United States increasing 

its shareholding without any cash contribution; and (4) amend the IFC Articles of Agreement to 

lower the veto threshold for future capital increases of the IFC from 20% of the voting power to 

15%, hence preserving the United States’ veto. The United States will not provide any cash 

contributions to the IFC, lowering U.S. voting power in the IFC from 20.99% to 16.39%, which 

is more closely aligned with U.S. voting power in the IBRD. Without Congressional 

authorization, the United States cannot vote for the general and selective capital increases, which 

will prevent all other IFC shareholders from contributing additional capital and will reduce the 

IFC’s ability to finance projects, especially in low income and fragile countries. 

Program Description

The IFC is the arm of the World Bank Group that promotes private sector development in 

developing countries by making loans and equity investments in private sector projects, 

mobilizing private capital alongside its own resources, and providing advisory and technical 

assistance services. Because private sector-led growth and job creation are essential for 

achieving sustained poverty reduction and shared prosperity, the IFC plays a vital role in 

achievement of the WBG’s Twin Goals and to achieving the Sustainable Development Goals 

(SDGs). 

In its 2019 fiscal year, the IFC approved $8.9 billion from its own resources, and mobilized an 

additional $10.2 billion from private sector investors for investment in 269 projects in 65 

countries. Of this, $5 billion (26%) was invested in the poorest countries (those eligible for 

funding from the World Bank’s IDA). IFC made investments across the globe in 2019, with the 

largest recipient regions being Latin America and the Caribbean (32.5%), Sub-Saharan Africa 

(20.9%), East Asia and the Pacific (18.8%), and South Asia (15.7%). The top sectors for IFC 

investment in 2019 were financial markets (56.3%), infrastructure (11.8%), tourism, retail, and 

property (5.8%), and agribusiness and forestry (5.6%). The IFC spent $295 million for advisory 

services in 2019, with sub-Saharan Africa receiving $96.5 million (33%). 

In its 2016 Forward Look strategy, the WBG committed itself to a coordinated and holistic 

program of complementary public and private investments to achieve its goals. To enhance its 

contribution to the WBG’s program, in 2017 the IFC adopted a transformative institutional 
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strategy – IFC 3.0 – which calls for improved and better sequenced collaboration with IDA and 

IBRD and implementation of new or improved tools to develop markets and maximize the IFC’s 

development impact. These tools include Country Private Sector Diagnostics, greater use of 

upstream advisory services, improved country strategies, and implementation of the Anticipated 

Impact Measurement and Monitoring (AIMM) framework. 

The 2018 capital increase is the final component of the IFC’s effort to enhance its development 

effectiveness. The capital increase package incorporated important reforms to enhance 

efficiency, effectiveness, and financial sustainability, including initiatives to control work force 

costs, process and institutional streamlining efforts, and efforts to increase the diversity of its 

work force, both in terms of gender and country of origin. The IFC will raise the share of annual 

investment projects in IDA eligible countries and fragile and conflict-affected states from 21% in 

2018 to 40% by 2030. It will also increase investments specifically targeted to empower women. 

 

How IFC Promotes U.S. Interests

The IFC is the world’s largest institution specifically dedicated to harnessing the private sector to 

support economic development and reduce poverty. The United States has a significant stake in 

the success of the IFC, particularly as it reorients its focus to private sector development in IDA 

and FCS countries, where the barriers to market development and private sector capital 

mobilization are significantly greater than in middle income countries. IFC investments benefit 

the United States by enabling developing countries to develop competitive markets that: 

 Create private sector jobs – 90 percent of jobs created in IDA countries are in the private 

sector; 

 Improve the access of the poor to vital goods and services, including housing, food, 

clothing, shelter, and health care; 

 Facilitate access to capital to support sustained investment; and 

 Support increased U.S. exports of goods and services. 

Meeting IFC Commitments		

The IFC capital increase was a key pillar of the 2018 World Bank capital increase agreed to by 

the United States and other shareholders in 2018. Failure by the United States to vote for the 

capital increase resolutions would limit the ability of the IFC to support pro-growth private 

sector development initiatives in the world’s poorest and most fragile countries. 

Achieving and Measuring Results		

The IFC employs a comprehensive system for delivering strong development results. The 

process begins with Country Private Sector Diagnostics (a new IFC 3.0 strategy tool), a 

collaborative tool that assesses constraints to market development and identifies opportunities to 

maximize the development impact of IFC investments. The tool enables the World Bank Group, 

governments, and partners to define private sector development challenges and take concrete 

actions to address them. 
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The AIMM is the next component in the IFC’s system. Introduced in 2017, proposed projects 

are rated on their expected development impact. This enables the IFC to set ambitious yet 

achievable targets and to develop a portfolio of projects with the greatest potential development 

impact. The framework is now operational for all IFC investment and advisory projects. The 

IFC also uses a multi-tiered results measurement system to monitor and assess project 

performance and employs a corporate scorecard to monitor institution-wide results. 

Evaluations of mature or completed projects are the final link in the impact-assessment 

framework. Each year, IFC undertakes self-evaluations of a sample of maturing investment 

operations and completed advisory services projects. These ratings form the basis of 

performance assessments for IFC overall and feed into sector, thematic, and regional 

assessments. IFC evaluations are validated by the WBG Independent Evaluation Group. Since 

2017, IFC has strategically focused its evaluations to fill knowledge gaps, assess IFC’s portfoliolevel impacts, and capture useful lessons that inform industry strategies and operations. 

Project Examples

Jordan: In 2018, IFC provided a $10 million loan to Tamweelcom, one of the largest 

microfinance companies in Jordan, to increase outreach to small business owners. This will help 

address a key challenge for micro-, small- and medium-enterprises (MSMEs), which account for 

over 70% of private sector employment but only receive 10% of total bank lending. IFC has 

supported Tamweelcom’s creation of a robust risk management framework, which has allowed it 

to more than double its portfolio and expand outreach from 73,000 to over 93,000 active 

borrowers. IFC has also supported the development of Tamweelcom’s business loan product, 

which by the end of December 2018 had disbursed over 1,600 loans valued at approximately $24 

million. 

Mexico: Diabetes has become a health crisis in Mexico, and the number of those suffering from 

diabetes could grow to at least 30 million in the next decade if the crisis grows unabated. An 

IFC equity investment of $4 million in 2018 in the Clinicas del Azucar, the largest chain of 

specialized diabetes clinics in Mexico, is helping it to treat the most vulnerable of these patients. 

With IFC’s support, the company plans to open 100 new and larger clinics across Mexico by 

2024 and expand provision of digital services. The IFC’s investment helped create 300 jobs, and 

the company has reduced the cost of privately provisioned diabetes care from $1,000 to $250 a 

year. 
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African Development Bank Group

The African Development Bank Group comprises the African Development Bank (AfDB) and 

the African Development Fund (AfDF). The Budget is seeking funding for the first of eight 

payments for the AfDB’s Seventh General Capital Increase (GCI-7) and for the first of three 

payments under the AfDF’s fifteenth replenishment period (AfDF-15). 

African Development Bank 

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

32,417,159 - 54,648,752 

Treasury requests $54.6 million towards the first of eight installments under the AfDB’s GCI-7. 

If not paid, the United States will not be able to subscribe to the full amount of shares to which it 

is entitled, which would result in a loss of U.S. shareholding and voting power in the institution. 

U.S. leadership was instrumental in achieving a wide-reaching plan to strengthen the AfDB’s 

financial sustainability, operational quality, and institutional integrity. Failure to subscribe in 

full would weaken our ability to ensure these reforms are implemented robustly. 

Program Description

The AfDB provides public sector financing at market-linked rates to 20 member countries, and 

provides loans, equity investments, lines of credit, and guarantees to the private sector in all 54 

African member countries. The AfDB had approximately $7 billion in approvals in 2019, 70% 

of which were for public sector projects and 30% to the private sector. Approximately 48% of 

2019 approvals were to infrastructure projects (primarily energy and transportation), with other 

key sectors being finance, agriculture, and social sectors. 

 The AfDB is financed by capital contributions from shareholders, borrowing from 

international capital markets, and retained earnings. Shareholders approved GCI-7 in 

2019 to allow the AfDB to expand its support to African countries and the private sector 

in the face of continued significant development needs on the continent. 

 In negotiations on the general capital increase, AfDB Management committed to 

implement a package of reform commitments, including: an enhanced income model that 

better controls lending volumes, greater operational selectivity, improving social and 

environmental safeguards and internal controls, increasing budget discipline, clarifying 

organizational structure and responsibilities, implementing a quality assurance plan to 

improve project quality, and strengthening the AfDB’s approach to governance and anticorruption. 

 The United States is the largest non-regional shareholder at the AfDB, with 6.4% of total 

shareholding, and the second-largest shareholder overall, after Nigeria. Every $1 of U.S. 

paid-in capital for the AfDB has supported approximately $253 in historical lending. 
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How AfDB Promotes U.S. Interests

AfDB financing supports U.S. national security and foreign policy objectives in Africa in the 

following ways.

 Supports U.S. Interests in North Africa: In 2019, the AfDB provided approximately 

$1.2 billion in financing to Tunisia, Morocco, and Egypt, all of which are important U.S. 

partners in the fight against terrorism. AfDB financing to these countries supports 

governance and business-climate reforms, infrastructure development, and job creation. 

 Creates Opportunities for U.S. Businesses: The AfDB plays a critical role in 

developing and opening African markets for U.S. businesses, in line with the goals of the 

President Trump’s Prosper Africa. AfDB financing develops physical and 

telecommunications infrastructure that boosts trade, leverages business climate reforms, 

supports local small and medium enterprises (SMEs), and contributes to the growth of an 

African middle class of consumers. It also supports improvements in countries’ policy 

environments to drive private sector investment and growth, and it promotes rules and 

policies around lending that are conducive to U.S. interests. 

 Combats Illicit Finance. The AfDB is working closely with the United States and 

African countries to identify and implement specific actions to improve transparency, 

combat corruption and criminal activity, and increase government accountability in 

Africa. 

Meeting AfDB Commitments

Failure to meet commitments to GCI-7 would result in further dilution of U.S. shareholding and 

could risk our single-country seat on the Executive Board, where the United States is the only 

shareholder to have its own seat. It would significantly weaken U.S. credibility and influence at 

the AfDB and impair our ability to advance key U.S. strategic priorities in Africa. 

Achieving and Measuring Results

In 2018, the AfDB Group reports that it: 

 Provided 14 million people with improved access to transport, half of them women; 

 Provided 8.2 million people with new or improved access to water and sanitation, half of 

them women; 

 Supported improvements in agricultural technologies benefiting 19 million people; 

 Constructed or improved 1,800 miles of power distribution and transmission lines; and 

 Provided loans and other financial services to 154,000 small businesses. 

In 2019, the AfDB Group finalized a review of the implementation of its Development Business 

Delivery Model, which places a premium on results measurement and institutional performance, 

and instituted a course correction plan as part of the reform commitments under GCI-7. As part 

of these commitments, the AfDB is implementing a new Quality Assurance Implementation Plan 

to drive further improvements in project quality at entry and quality at exit. In 2020, the AfDB 
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Group will also update its Results Measurement Framework to support the new commitments 

made under GCI-7 as well as AfDF-15. The Results Measurement Framework tracks and holds 

the AfDB Group accountable for its performance on 105 quantitative indicators, organized in 

four interconnected levels: (1) development progress in Africa; (2) the AfDB Group’s 

contribution to development in Africa; (3) the quality of the AfDB Group’s development 

operations; and (4) the AfDB Group’s organizational efficiency. 

Project Examples 

Morocco. Completed in 2018, the $152 million Program of Support for Strengthening Financial 

Stability and Inclusion improved stability and inclusion in Morocco’s financial and retirement 

sectors, including with regard to banking, insurance, and capital markets.. The project included 

policy dialogue with the government on the viability of the retirement sector, improving the 

living conditions of pensioners, and promoting farmers’ access to financing. 

Namibia. Completed in 2018, the New Port of Walvis Bay Container Terminal Project 

supported Namibia to establish the port of Walvis Bay as the preferred port for southern and 

central African logistics operations on the west coast of the continent. In 2013, the AfDB 

provided $200 million for the expansion of the container terminal, and provision of equipment, 

including four ship-to-shore cranes. The project included a logistics and capacity building 

component to complement the port expansion. The port’s handling capacity is expected to triple 

because of this investment.

 
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African Development Fund 

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

171,300,000 171,300,000 171,300,000 

Treasury requests $171.3 million in support of AfDF programs over the AfDF-15 replenishment 

period (FY 2020 – FY 2022), including towards the first of three installments to AfDF-15. 

Program Description

The AfDF provides grants and highly concessional loans to the 37 poorest countries in Africa, of 

which half are fragile and conflict-affected states. The AfDF approved approximately $2.1 

billion in financing in 2019. Approximately 58% of 2019 approvals were to infrastructure 

projects (mainly energy, transportation, and water supply and sanitation), with other key sectors 

being agriculture, finance, and social sectors. 

 

 The AfDF is financed by donor countries, including the United States, and requires new 

donor resources every three years. In December 2019, the United States joined other 

donors to conclude negotiations on the AfDF-15 replenishment, which totaled $7.7 

billion. The United States pledged $513.9 million over three years, which is equivalent 

to the U.S. pledge to the previous replenishment. 

During the AfDF-15 replenishment negotiations, the United States achieved the following reform 

commitments that will increase AfDF’s efficiency and its ability to achieve impact: 

 In coordination with the IMF and World Bank, AfDB management is instituting a 

dynamic application of country Debt Sustainability Analysis, has proposed a stronger 

allocation incentives around debt sustainability and the provision of grants, and will 

update the Bank’s Non-Concessional Borrowing Policy. 

 Management presented a strong case for greater project selectivity, focusing on a two 

pillar approach that will largely fund infrastructure projects and capacity development to 

increase the sustainability and effectiveness of infrastructure projects. 

 AfDF will apply its cutting-edge fragility diagnostic tools in all AfDF countries, and 

leading up to the Mid-Term Review, will refine its approach to operations in fragile 

countries to better address the drivers of fragility. 

The United States is historically one of the largest donors to the AfDF and currently has a 5.3% 

voting share at the AfDF (just behind Japan and Germany). Every $1 in U.S. contributions to 

AfDF-15 will mobilize nearly $15 in contributions from other donors and internally generated 

resources. 

 
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How AfDF Promotes U.S. Interests

AfDF assistance helps achieve U.S. national security and foreign policy objectives in Africa. 

 Reduces Instability in Fragile States: Nineteen of the AfDF’s 37 recipient countries 

are fragile and conflict-affected states, including countries such as Mali, Chad, and Niger 

that are on the front-lines of the fight against terrorism in Sub-Saharan Africa. Over the 

2020-2022 period, more than half of the AfDF’s financing will be used to combat 

instability in fragile and conflict affected states, including through projects to strengthen 

governance and anti-corruption. 

 Reduces Humanitarian and Health Crises: AfDF financing addresses the root causes 

of migration flows and humanitarian crises in Africa’s poorest countries. The AfDF 

helps reduce fragility, builds infrastructure, strengthens food security, and supports 

private-sector led growth and economic diversification, thereby creating jobs for Africa’s 

growing youth population. 

 Complements U.S. Bilateral Support to Africa: The AfDF’s work to enhance 

economic growth and improve stability and governance helps support U.S. objectives of 

increasing trade and investment with African partners, including through collaboration 

with Power Africa and Prosper Africa. 

Meeting AfDF Commitments

U.S. unmet commitments to the AfDF replenishments and the AfDF’s Multilateral Debt Relief 

Initiative (MDRI) amount to approximately $328.2 million ($156.2 million for AfDF 

replenishments and $196.7 million for AfDF MDRI) in FY 2020. These unmet commitments 

decrease the financial capacity of the AfDF, thereby reducing the funding available to address 

instability in fragile states, the root causes of migration and humanitarian crises, and health 

emergencies. They also undermine U.S. credibility and leadership at a time when the AfDB 

Group is undertaking many critical reforms on which the United States is a leading voice. 

Full funding of the FY 2021 Budget request for AfDF will prevent the accumulation of new 

unmet commitments on our replenishment pledges to AfDF. U.S. unmet commitments to AfDF 

MDRI will, however, increase in 2021 by approximately $24.7 million. The U.S. share of the 

cost of AfDF MDRI during the AfDF-15 period is $68 million. 

Achieving and Measuring Results 

In 2018, the AfDB reported that programs in AfDF countries: 

 Built 1,770 miles of power distribution lines; 

 Provided 9 million people with improved access to transport; 

 Created 1.2 million jobs; 

 Provided 8.2 million people with new or improved access to water and sanitation; and 

 Supported improvements in agricultural productivity benefiting 19 million people. 
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AfDF-15 includes a set of 92 commitments for the AfDF to achieve over 2020-2022. These 

commitments cover the AfDF’s development work as well as its institutional efficiency and 

effectiveness. Each commitment includes at least one measurable indicator; for example, under 

the energy access target, the AfDF commits to create one million connections to on-grid energy 

and provide access for one million households to off-grid and decentralized energy access by the 

end of 2022. 

Project Examples 

The Gambia and Senegal. The SeneGambia Bridge and two one-stop border posts opened in 

January 2019 and are reducing transport costs, encouraging trade, and uniting previously 

separated communities, thanks to AfDF grants and loans totaling about $90 million. The bridge 

spans the Gambia River and links the two halves of The Gambia, providing a safer, quicker 

alternative to the ferry crossing. The historic connection now links Senegal to its southern 

Casamance region, which is separated from the capital and main population center of Dakar by 

The Gambia. It has enhanced traffic flow between the northern and southern parts of The 

Gambia and Senegal, and will also increase sub-regional trade and socioeconomic development 

opportunities on the West African transit corridor between Dakar and Lagos, Nigeria. The 

border posts reduce customs formalities, enhancing the potential for increased trade and 

business. 

Ethiopia and Kenya. In 2019, the AfDF completed the second phase of a major highway 

corridor linking major urban areas in Kenya and Ethiopia, to which it contributed $278 million. 

In the initial phase of this project, the AfDB built 313 miles of road in the corridor completing 

linkages between Mombasa and the Kenyan towns of Merille and Turbi, through Marsabit. In 

2019, the AfDF finished an additional 243 mile segment running through Ethiopia that links 

Yabelo and Mega to Addis Ababa. The project has reduced travel time between Nairobi and 

Addis Ababa by 57% and reduced the cost of transporting a 20-foot container from Mombasa to 

Moyale by 25%. It has benefitted cattle farmers, freight shippers, transport operators, the 

business community, and subsistence farmers along the road corridor, including women. 

 
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Asian Development Bank 

The Asian Development Bank comprises the Asian Development Fund (AsDF) and the Ordinary 

Capital Resources of the Asian Development Bank (AsDB). As there are no outstanding U.S. 

capital commitments for the Ordinary Capital Resources of the AsDB, the Budget is seeking 

funding only for AsDF. 

Asian Development Fund 

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

47,395,000 47,395,000 47,395,000 

The Budget requests $47.4 million in support of AsDF programs over the eleventh replenishment 

(AsDF-12; FY 2018 – FY 2021), including towards the fourth of four installments to AsDF-12. 

Program Description

The AsDF is a grants-only fund that supports Asia’s poorest countries. Eighteen countries are 

eligible for AsDF grants. AsDF grants help reduce poverty, support economic growth, mitigate 

and respond to disaster risks, and provide support for fragile and conflict-affected states. 

 In 2019, AsDF approvals totaled about $1.6 billion, of which nearly 50% supported 

infrastructure projects in the energy, water, and transportation sectors. 

 During 2017–2020, AsDF will provide up to $200 million in grants for disaster risk 

reduction and up to $218 million to facilitate faster disaster response and reduce 

humanitarian expenditures by AsDF countries and donors in the wake of natural disasters 

in the region. 

 The United States pledged $189.6 million over four years to AsDF-12, a 47% decrease 

from the previous replenishment. This decrease allows for $170 million in savings while 

allowing the United States to remain the third-largest donor, after Japan and Australia. 

Every $1 contribution from the United States to AsDF-12 leverages almost $20 in new 

donor contributions and internally generated resources. 

How AsDF Promotes U.S. Interests

AsDF assistance helps achieve U.S. national security and foreign policy objectives in Asia and 

the Pacific. 

 Assistance for Rohingya Refugees:  The AsDF has provided $100 million in grants to 

Bangladesh to support basic infrastructure and services for more than 700,000 displaced 

in Rohingya. AsDF grants help fund projects in the water supply and sanitation, disaster 

risk management, energy, and roads sectors. 
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 Providing a Superior Source of Development Financing for Small States: In 

November 2018, the AsDB Board approved a proposed increase in the base allocation of 

AsDF-eligible countries for 2019 and 2020. The base allocation for AsDF countries will 

rise from $6 million to $13 million over the remainder of the AsDF-12 implementation 

period. Given development needs and capacity constraints, small states, including Pacific 

Island states, are especially vulnerable to unfavorable and non-transparent lending which 

does not contribute meaningfully to development. An increased base allocation benefits 

the smallest, poorest countries the most by expanding the pool of available grant 

financing. 

 Financing Afghanistan’s Development: The AsDF has played an important role 

helping Afghanistan to develop and rehabilitate its infrastructure, improve trade linkages 

with neighboring countries, and provide basic services through special allocations for the 

country. 

Meeting AsDF Commitments

The United States has approximately $284 million in unmet commitments to the AsDF, which 

adversely affect the AsDF and U.S. leadership in the institution. Without fully funding its 

commitments, the United States risks impairing the ability to shape the direction of AsDF 

policies and activities, as well its ability to ensure that sufficient concessional finance is available 

to strategically important countries like Afghanistan. Other AsDF donors have withheld, 

proportionally, a total of $108.6 million in contributions to previous replenishments in response 

to U.S. unmet commitments. Full funding of the FY 2021 Budget request for AsDF will prevent 

the accumulation of new unmet commitments on our replenishment pledges to AsDF. 

Achieving and Measuring Results

AsDF reports achieving the following from 2014-2017: 

 Connected 114,000 new households to electricity; 

 Built or upgraded over 9,300 miles of road; 

 Connected 442,000 households with new and improved water supplies; 

 Supported nearly 9.5 million students with new or improved educational facilities, of 

which more than half were female; 

 Trained nearly 2 million teachers to improve teaching quality and meet competency 

standards, of which 67% were female; and 

 Provided microfinance accounts to close to 5 million people, of which over three-quarters 

were female. 

The AsDB reports on results through its annual Development Effectiveness Review (DEfR) and 

Performance Scorecard, which compiles project-level outputs. In particular, the DEfR measures 

whether projects are effective, completed on time and according to benchmarks, and sustainable 

after the conclusion of AsDB or AsDF involvement. These standards are used to compile 

lessons learned and improve future projects. 
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Results in recent years have shown continued progress on the AsDF’s development 

effectiveness. During 2017, 74% of completed AsDF projects that were validated by the AsDB’s 

Independent Evaluation Department (IED) were rated successful, up from 64% in 2011-2013. 

Project Examples

Afghanistan. The AsDF provided a $75 million grant for the Horticulture Value Chain 

Development Sector Program, creating jobs while also strengthening value chains, reducing 

waste, and boosting exports. The project will increase Afghanistan’s horticultural exports by 

more than 25%. The project also aims to increase female employment in the sector. 

Tonga. The AsDF provided a $2.25 million grant to Tonga through the second phase of a 

policy-based support Building Macroeconomic Resilience Program. Through the program, 

Tonga strengthened public financial management to boost tax revenue, adjusted the public 

service salary structure, raised the performance of the country’s public enterprises, and made the 

investment environment more hospitable to private businesses. The government also embarked 

on state-owned enterprise reforms to improve their governance standards and financial viability, 

including the sale of a stake in Tonga Cable Limited to a private Jamaican telecommunications 

company. 

Kyrgyzstan. Approved in 2019, the Naryn Rural Water Supply and Sanitation Development 

Program provides $13.7 million in finance to support Kyrgyzstan’s development of its water 

supply and sewerage systems. Naryn is a mountainous province and one of the poorest in the 

Kyrgyz Republic, with a poverty rate of 29% in 2017. Most villages in Naryn have unprotected 

water sources, and incidences of waterborne diseases are high. The program will improve the 

health and quality of life of approximately 64,000 people in 31 villages in Naryn by providing 

inclusive and reliable access to water supply and sanitation services. 
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North American Development Bank

FY 2018 

Enacted 

FY 2019 

Enacted 

FY 2020 

Request 

- - - 

The FY 2021 Budget requests program limitation language to allow the Secretary of the Treasury 

to subscribe to the full amount of $1.275 billion in NADB callable capital shares that Congress 

authorized under the United States-Mexico-Canada Agreement Implementation Act (USMCA 

Act). The Budget is not requesting new funding for NADB in FY 2021. 

Program Description

NADB, founded in 1994 by the United States and Mexico, provides financing for environmental 

infrastructure projects within the areas up to 100 kilometers (62 miles) north and 300 kilometers 

(186 miles) south of the U.S.-Mexico border. These projects, implemented on both sides of the 

border, improve the quality of life for residents of the border region, strengthen municipal 

services, and create new jobs and business opportunities. Key areas of focus include wastewater 

collection and treatment, air quality improvements, solid waste management, and renewable 

energy. Prior to being eligible for NADB financing, all projects must be certified for their 

environmental benefits. NADB is well-respected among states and communities along the 

border, where it has had a tangible impact on the environment and the lives of the region’s 

residents. In 2019, NADB approved $381 million in new loans and grants for environmental 

infrastructure projects in the border region. 

Under NADB’s charter, the United States and Mexico agreed to contribute equally to NADB’s 

authorized capital stock, and each country has a 50% voting share. In 2015, the United States and 

Mexico agreed to double NADB capital – an increase of $3 billion. The U.S. portion of the 

increase of $1.5 billion is comprised of $225 million in paid-in shares and $1.275 billion in 

callable capital shares. 

The recently passed United States-Mexico-Canada Agreement Implementation Act (USMCA) 

authorizes the Secretary of the Treasury to subscribe to the shares allocated to the United States 

in the 2015 capital increase. This authorization, however, limits any subscription to shares “only 

to such extent and in such amounts as are provided in advance in appropriations Acts.” Congress 

has appropriated the full $225 million for the U.S. paid-in capital shares – $10 million through 

the 2016 Consolidated Appropriations Act and $215 million through the USMCA Act. The 

USMCA Act did not include, however, a program limitation on subscription to callable capital 

shares. This language is needed to enable the Secretary of the Treasury to subscribe to the 

authorized callable capital shares. The FY 2016 appropriations act included a program limitation 

to subscribe to up to $255 million in callable capital, resulting in a shortfall of $1.02 billion. To 

ensure that the full amount for callable capital authorized in the USMCA is provided for in 

advance in appropriations Acts, the FY 2021 Budget requests a program limitation that enables 

the United States to subscribe to additional callable capital shares in the amount of $1.02 
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billion. Subscription to the full amount of paid-in and callable shares is necessary to demonstrate 

strong shareholder support for the NADB, which will boost its credit ratings and enable it to 

achieve maximum impact through investment in environmental infrastructure in the border 

region. 
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Environmental Trust Funds

Global Environment Facility

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

139,575,000 139,575,000 - 

No funding is requested in FY 2021, as the FY 2019 and FY 2020 appropriations place the 

United States on track to meet its pledge of $273.2 million to the GEF seventh replenishment 

(GEF-7; FY 2019 – FY 2022). This pledge level will support important international 

environmental, toxic chemical, and biodiversity conservation activities through the GEF, while 

pursuing a more balanced share among donor countries as we seek to advance shared priorities. 

Program Description

The GEF is a multilateral trust fund that provides grants for environmental projects in developing 

countries and emerging markets. Currently, the GEF funds projects in 165 countries in areas such 

as wildlife trafficking, chemical pollution, and conservation of oceans and land. 

How GEF Promotes U.S. Interests

The GEF benefits the U.S. economy and environment by addressing many external environmental 

problems that affect our domestic health, safety, and prosperity. For example, GEF projects: 

 Reduce pollution and prevent toxic chemicals such as mercury from making their way 

into the air, water, and U.S. food supply; 

 Support America’s logging industry by curbing international illegal logging through 

sustainable forest management projects, thereby leveling the playing field for lumber and 

other related products; 

 Fight wildlife trafficking and strengthen protected area enforcement, eliminating a source 

of funding for criminal groups in Africa and the Middle East with the aim of reducing 

conflicts and promoting national security interests; and 

 Conserve fish stocks outside U.S. waters and promote sustainable fishing practices in the 

Pacific and Atlantic oceans, as well as the Gulf of Mexico, which are critically important 

to the U.S. food supply chain and a significant revenue source for U.S. fishing 

companies.

In many countries, GEF investments pave the way for greater business opportunities for U.S. 

companies by helping to establish new markets and improving the investment climate related to 

environmental conservation and protection. 
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Meeting GEF Commitments

Congress appropriated $139.6 million for the GEF in FY 2020, of which $136.6 million was 

designated for the GEF-7 replenishment. The additional amount of approximately $3 million 

will be applied to unmet commitments. This will reduce U.S. unmet commitments to the GEF to 

approximately $128.9 million in FY 2020. The level of U.S. unmet commitments will remain 

unchanged in FY 2021 under the proposed Budget. 

Achieving and Measuring Results

Between the start of GEF-7 in July 2018 and December 2019, the GEF Council has approved a 

total of 97 projects and 12 programs, totaling $1.48 billion in project financing, which are 

expected to achieve the following results: 

 Protection and sustainable use planning of 1.3 billion hectares of landscapes and 

seascapes, as well as restoration of 5.6 million hectares of land; 

 Co-financing at a rate of nearly $9 for each GEF-7 dollar invested; and 

 Reduction or safe disposal of 33,500 metric tons of toxic chemicals, thereby promoting 

healthy communities, water quality, and food systems. 

Every four years, the GEF’s Independent Evaluation Office produces a comprehensive 

evaluation of past project and operational performance. These evaluations influence the 

programming objectives for the next replenishment period. 

Project Examples

Global Wildlife Program ($82 million grant, $483 million in co-financing). This investment 

seeks to reverse the decline in wildlife populations due to the illegal wildlife trade and to 

promote wildlife conservation for development by conserving habitat and wildlife; promoting a 

wildlife-based economy; and combating wildlife trafficking. 

Blue Nature Alliance ($23 million grant, $100 million in co-financing). This investment aims 

to catalyze the conservation of 1.25 billion hectares of ocean ecosystems (3.4% of the global 

ocean) by supporting new and expanded marine protections and improved management of 

existing marine protected areas to safeguard the health of oceans globally. 

 
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Technical Assistance

Office of Technical Assistance

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

30,000,000 30,000,000 33,000,000 

Treasury is seeking $33 million for its Office of Technical Assistance (OTA). 

Program Description 

OTA works with finance ministries, central banks, and related government institutions to support 

efficient revenue collection, well-planned and executed budgets, judicious debt management, 

sound banking systems, and strong controls to combat money laundering and other economic 

crimes. OTA complements the work of Treasury’s offices of International Affairs and Terrorism 

and Financial Intelligence by helping the governments of developing and transitional countries build 

the human and institutional capacity to implement improvements in economic and terrorist 

financing policies. OTA also supports partner countries’ efforts to more effectively raise their own 

domestic resources, reducing dependence on foreign assistance. OTA’s work is critical for 

meeting U.S. foreign policy goals, such as private sector-led economic growth, reduced 

corruption, and increased accountability and transparency. OTA is a small, cost-effective 

program that leverages a cadre of highly experienced technical advisors who work side-by-side 

with host country counterparts. Currently, OTA has projects in approximately 50 countries in 

Latin America, Africa, Europe, Asia, and the Middle East. 

Demand for OTA assistance around the world is strong and continues to increase. OTA would 

use the requested budget resources in FY 2021 to be able to respond quickly and in a sustained 

way to this growing demand in areas that are priorities for the United States, including 

combating terrorist financing and financial crimes, reducing countries’ dependence on foreign 

financial aid through improved domestic resource mobilization, and creating the conditions for 

private sector-led economic growth, including by improving the climate for private sector 

investment in infrastructure projects in developing and transitional countries. The requested 

funding would also support important enhancements to OTA’s project monitoring and evaluation 

regime in compliance with Foreign Aid Transparency and Accountability Act of 2016 (FATAA). 

How OTA Promotes U.S. National Security 

OTA performs an important role in support of U.S. national security by helping developing and 

transitional countries combat financial crimes, money laundering, and terrorist financing. In 

addition, OTA’s role stabilizes banking systems, develops capital markets, improves the 

investment climate, including for infrastructure, and improves transparency and accountability in 

government finances, helping to spur private-sector led economic growth which, in turn, 

supports the development of foreign markets for U.S. exports.
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Achieving and Measuring Results 

OTA has a robust system for monitoring and evaluating program performance, from project 

initiation through execution, to post-project evaluation. At the inception of each project, OTA 

and the relevant foreign government ministry or central bank identify the high-level aims of the 

engagement, which are reflected in signed terms of reference. The terms of reference are 

complemented by a detailed work plan specifying the activities, deliverables, and timelines for 

achieving those goals, as well as the outcomes that will provide evidence that the goals have 

been met. In addition, OTA advisors provide monthly reports and trip reports to Treasury 

leadership and other stakeholders on the execution of the work plan, including progress against 

project objectives. 

These reports are validated through ongoing dialogue with advisors coupled with on-site project 

reviews conducted by OTA management. In addition, post-project reports document the results 

of completed technical assistance, and are used as a basis to improve the planning and execution 

of future projects. 

OTA closely monitors the level of “traction,” or the degree to which changes in partner 

governments’ behavior occur as a result of OTA assistance (e.g., the number of foreign officials 

who are taking an active role in pursuing change, or interim deliverables that are on time or 

ahead of schedule). Levels of traction are measured by OTA advisors and headquarters staff 

according to specific indicators that are relevant to each of the five OTA core areas. 

OTA monitoring and evaluation have consequences: projects showing results receive continued 

investment of OTA resources, while poorly performing projects, such as those where OTA’s 

counterparts lack political will to implement reform, are terminated and the resources reallocated 

to other projects. 

Innovations in Monitoring and Evaluation 

In accordance with the Foreign Aid Transparency and Accountability Act, OTA continues to 

strengthen its ability to measure the results of its technical assistance projects. This involves 

documenting project goals, activities, outputs, and outcomes in logical frameworks and 

conducting independent (third-party) evaluation of OTA projects. To support the costs of 

independent evaluation and enhanced project monitoring activities, OTA is requesting an 

additional $3 million in program resources in FY 2021. Once the new framework is fully 

implemented, each OTA project would be subject to an independent evaluation at its midpoint 

(generally after the second year of technical assistance activities) and 6-12 months after a project 

concludes. Evaluations will seek to determine the extent to which project goals were achieved. 

The results of evaluations will be made available to the public as required by the FATAA. 

Project Examples 

Dominican Republic Investigates Tax Fraud. OTA’s partnership with the Dominican 

Republic’s Dirección General de Impuestos Internos (DGII) has advanced the institution’s 

investigation and prosecution of tax fraud and tax evasion cases. Following the creation of the 
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DGII Tax Crimes and Anti-Money Laundering Unit, OTA helped develop an investigations 

operational manual, documenting a structured investigative approach and trained tax crimes 

investigators in case and investigation management. Since the completion of the new unit, DGII 

has received 205 allegations and initiated 104 investigations. In March 2018, the DGII Tax 

Crimes unit made its first arrest of a tax preparer for tax fraud involving an estimated loss of $8.2 

million. The Tax Crimes Unit has submitted six investigations to the DGII Legal Division for 

potential prosecution of individuals alleged to have evaded taxes of as much as $21 million. 

Ukraine Conducts Distressed Loan Sales. One of the most important aspects of strengthening 

Ukraine’s banking sector, and in turn the overall economy, has been to sell the assets of failed 

banks. Ukraine’s Deposit Guarantee Fund (DGF), with OTA support, successfully implemented 

a bulk sales process for loans taken over from almost one hundred bank failures that were 

precipitated by the country’s 2014 political and economic crisis. Starting in the last quarter of 

2018, the DGF has sold 600,000 loans valued at $1.2 billion by balance (principal plus interest 

accrued) through several successful bulk sales with international loan sale advisors, resulting in 

the return of these assets to the private sector at a market price and substantial recovery of funds 

to the government. In addition, these sales have attracted European and U.S. investors, and have 

created a secondary market in purchasing, collecting, and servicing distressed debt. This process 

is the first successful state bulk sales program in Central and Eastern Europe since the early 

2000s and is the culmination of six years of sustained engagement by OTA. 

 
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Debt Restructuring Programs

U.S. efforts on debt restructuring and debt relief have been fundamental to helping some of the 

world’s poorest countries stabilize, restart economic growth, and reduce poverty and instability. 

These programs include the Heavily Indebted Poor Countries (HIPC) Initiative, the HIPC Trust 

Fund, the Multilateral Debt Relief Initiative (MDRI), and the Tropical Forest Conservation Act. 

Over forty countries, including Haiti, Afghanistan and Liberia, have benefitted from U.S. debt relief 

and restructuring programs. The Budget requests $78 million for the cost of U.S. bilateral debt 

relief through the Paris Club for Somalia as part of the Heavily Indebted Poor Countries (HIPC) 

Initiative. 

Heavily Indebted Poor Countries Initiative

 

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

Request 

- - $78,000,000 

The HIPC initiative was launched in 1996 and enhanced in 1999 to provide deeper and broader debt 

reduction for the poorest heavily indebted countries committed to economic reform and poverty 

reduction. Three countries remain potentially eligible for HIPC -- Somalia, Sudan, and Eritrea). 

Somalia has implemented progressively tougher economic reforms and is expected to meet the 

requirements for the first phase of the debt relief process under HIPC (known as Decision Point) in 

the first quarter of calendar year 2020. Debt relief for this strategically important country is critical 

for Somalia’s economic stability and consolidation of security gains made in Somalia with strong 

U.S. financial support and interagency engagement. 

The United States is Somalia’s largest creditor, with approximately $1 billion outstanding; the bulk 

of the debt is held by the Department of Defense, with the remainder held by the Department of 

Agriculture (USDA) and the United States Agency for International Development (USAID). The 

current estimated budget cost to provide bilateral debt restructuring and relief for Somalia is 

approximately $113 million, because of the discount rate applied to the outstanding nominal arrears. 

The FY 2020 appropriations act includes debt restructuring authority and transfer authority from the 

Department of State for up to $35 million to enable the United States to participate through the Paris 

Club in the Decision Point stage of the HIPC process. With continued strong performance, Somalia 

is expected to reach the final stage of HIPC debt relief (known as Completion Point) in 2021. The 

Budget requests $78 million in FY 2021 to cover the estimated budget cost for fully relieving the 

remainder of Somalia’s outstanding debt to the United States through the Paris Club as part of the 

HIPC process. 

 
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Annex 1: MDB Basics

What are the MDBs?		

The United States is a member of several development institutions, including the: 

 World Bank 

 Asian Development Bank 

 Inter-American Development Bank 

 African Development Bank 

 European Bank for Reconstruction and Development 

 International Fund for Agricultural Development 

The development banks are international financial institutions, but they differ from commercial 

banks in their mandate and structure. They are owned by both borrowing and non-borrowing 

countries and provide financial and technical assistance to developing countries. The United 

States is the largest shareholder in the World Bank, Inter-American Development Bank, 

European Bank for Reconstruction and Development and the International Fund for Agricultural 

Development; the co-largest shareholder (with Japan) in the Asian Development Bank; and the 

largest non-regional and second-largest overall shareholder in the African Development Bank. 

What is Treasury’s role?		

In the U.S. Government, Treasury is charged with leading U.S. engagement in the MDBs. For 

the five largest MDBs in which the United States participates, a U.S. Executive Director 

(USED), who is based at each bank, is appointed by the President and confirmed by the Senate to 

represent U.S. interests, engaging daily in meetings at various levels and casting votes 

throughout the year. Treasury works closely with the USEDs and a wide-ranging interagency 

group on MDB issues. Additionally, Treasury provides direction for how to vote on projects and 

policies to the USEDs. The Secretary of the Treasury serves as the U.S. Governor to each MDB, 

and votes on high-level institutional matters that involve major changes to the structure or 

financing of the organization. 

How do the MDBs finance development projects?		

Most of the MDBs have two financing facilities, which are frequently referred to as “windows,” 

from which they make loans, provide guarantees and other financial instruments, and provide 

grants: the “non-concessional” window (also referred to as “hard loan windows”) and the 

“concessional” window (also referred to as “soft loan windows”). Some institutions have a third 

window for private sector operations, whereas others make private sector investments from their 

“non-concessional” windows. Each institution can also serve as trustee for specialized funds 

established at the request of member countries. 

 The non-concessional windows primarily provide loans at market-linked interest rates to 

middle-income countries, such as Colombia, Egypt, Indonesia, and Botswana. 
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 The concessional windows provide some combination of grants, very low interest loans 

with long tenors, and a limited supply of market-linked loans to countries with per capita 

incomes below a certain threshold and that lack the creditworthiness to access other 

financing sources, including the non-concessional windows. The concessional windows 

for each MDB are: 

o International Development Association (World Bank Group) 

o Asian Development Fund (Asian Development Bank) 

o African Development Fund (African Development Bank Group) 

The United States is also a contributor to the International Fund for Agricultural Development, 

which functions like an MDB concessional window. Because the European Bank for 

Reconstruction and Development and North American Development Bank are private sectororiented, they do not have a concessional window, while the Inter-American Development Bank 

provides both non-concessional and concessional funding from one window. The Asian 

Development Bank provides both non-concessional and concessional loans from its Ordinary 

Capital Resources; the Asian Development Fund provides only grants. 

How are the MDBs funded?		

Countries are referred to as “shareholders” in an MDB and hold a certain percentage of shares, 

and therefore voting power, based on their contributions. 

At times, shareholders provide new funding to support the non-concessional or concessional 

windows. This funding can take three forms: 

 Donor replenishments 

 General capital increases 

 Selective capital increases 

Donor Replenishments 

Because the concessional windows provide most of their funding to the poorest countries as 

grants or very low-cost, long-term loans, these windows deplete their funding over time and 

require periodic “replenishment” by donor countries every three to four years. When fully 

funded, U.S. funding commitments are paid out in equal installments over the replenishment 

period. 

General Capital Increases 

Under a general capital increase (GCI), MDB shareholder governments decide to provide 

additional capital to support the MDBs’ non-concessional or private sector windows by 

purchasing new shares in the institution. Unlike concessional windows, the non-concessional 

and private sector windows are expected to be more financially self-sustaining, requiring 

additional member state contributions less frequently, provided they follow prudent capital 

management policies. However, global and regional economic conditions or shareholders’ 

desire to see an MDB provide higher levels of finance in support of particular aspects of a 
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region’s development agenda may lead to member countries negotiating to provide new capital 

to the MDB through a GCI. In these cases, member countries negotiate the total amount of 

additional capital required and the amount to be provided by each member. 

The financing arrangements for GCIs are unique. Unlike replenishments, only a small portion of 

the total commitment is paid directly to an MDB. This portion is called “paid-in” capital, and 

typically ranges from 5-10% of the total increase. The pay-in period often ranges significantly 

(e.g., from three to eight years). 

The remainder of the commitment is made in the form of “callable capital.” Callable capital 

represents a financial commitment made by shareholders, but there is no actual transfer of funds. 

These commitments are meaningful because they enable the MDBs to strengthen their credit 

ratings and reduce borrowing costs, and, in turn, lend to borrowers at rates lower than what they 

could obtain in the markets. This capital is “callable” under limited and specifically enumerated 

circumstances to meet the obligations of the respective MDBs. No MDB has made a call on 

callable capital to date. 

If a shareholder fails to purchase the shares that it decided to buy in the capital increase 

negotiations, the relative shareholding and voting power of that country will be diluted. Under 

the rules in place for most GCIs, voting shares are adjusted to reflect contributions as they come 

in from shareholders, such that delayed contributions will have an impact on the current voting 

share. Any shares allocated to a country that are not paid for within the allotted subscription 

period are moved to the MDB’s unallocated capital, potentially making these shares available for 

other shareholders to acquire. Several countries seeking to expand their influence in the MDBs 

have expressed an interest in purchasing shares when they become available in this manner. 

Selective Capital Increases 

A selective capital increase (SCI) is not intended primarily as a fundraising vehicle, but is used 

to allocate new shares to effect changes in the relative voting power of members of an MDB or 

accommodate accession by new members. Unlike a GCI, where shares are allocated to members 

in proportion to their existing shareholding, countries subscribe to different levels of shares 

under an SCI to achieve the desired realignment in voting power. Countries may have to 

purchase shares under an SCI in order to maintain their voting power or limit dilution, but the 

total capital increase under an SCI is typically much smaller than under a GCI. 

 
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Annex 2: FY 2021 Appropriations Language and Authorization

Request

Below is a summary of proposed appropriations language and authorization request. 

FY 2021 Appropriations Language

CONTRIBUTION TO THE INTERNATIONAL BANK FOR RECONSTRUCTION AND 

DEVELOPMENT

For payment to the International Bank for Reconstruction and Development by the Secretary of 

the Treasury for the United States’ share of the paid-in portion of the increases in capital stock, 

$206,500,000, to remain available until expended. 

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS 

The United States Governor of the International Bank for Reconstruction and Development may 

subscribe without fiscal year limitation to the callable capital portion of the United States’ share 

of increases in capital stock in an amount not to exceed $1,421,275,728.70. 

CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

For payment to the International Development Association by the Secretary of the Treasury, 

$1,001,400,000, to remain available until expended. 

CONTRIBUTION TO THE AFRICAN DEVELOPMENT BANK

For payment to the African Development Bank by the Secretary of the Treasury for the United 

States’ share of the paid-in portion of the increases in capital stock, $54,648,752, to remain 

available until expended. 

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS 

The United States Governor of the African Development Bank may subscribe without fiscal year 

limitation to the callable capital portion of the United States’ share of such capital stock in an 

amount not to exceed $856,174,624. 

CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND 

For payment to the African Development Fund by the Secretary of the Treasury, $171,300,000, 

to remain available until expended. 

CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND 

For payment to the Asian Development Bank's Asian Development Fund by the Secretary of the 

Treasury, $47,395,000, to remain available until expended. 

 
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NORTH AMERICAN DEVELOPMENT BANK: LIMITATION ON CALLABLE 

CAPITAL SUBSCRIPTIONS 

The Secretary of the Treasury may subscribe without fiscal year limitation to the callable capital 

portion of the United States share of capital stock in an amount not to exceed $1,020,000,000: 

Provided that this authority shall be in addition to any other authority provided by previous Acts. 

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE 

For necessary expenses to carry out the provisions of section 129 of the Foreign Assistance Act 

of 1961, $33,000,000, to remain available until expended, of which not more than $6,600,000 

may be used for administrative expenses: Provided, that amounts made available under this 

heading may be made available to contract for services as described in section 129(d)(3)(A) of 

the Foreign Assistance Act of 1961, without regard to the location in which such services are 

performed. 

. 

DEBT RESTRUCTURING 

For the costs, as defined in section 502 of the Congressional Budget Act of 1974, of modifying 

loans and loan guarantees for Somalia or credits extended to Somalia, as the President may 

determine, including the cost of selling, reducing, or cancelling amounts owed to the United 

States, $78,000,000, to remain available until expended, which may be used notwithstanding any 

other provision of law. 
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FY 2021 Authorization Requests1

International Monetary Fund – New Arrangements to Borrow 

Section 7065(a). Section 17 of the Bretton Woods Agreements Act (22 U.S.C. 286e-2) is amended 

– 

(1) in subsection (a) -- 

(A) by adding a new paragraph (3) and subsequently renumbering the following paragraphs; 

(B) by adding in new paragraph (3) the following: 

“(3) In order to carry out the purposes of a one-time decision of the Executive Directors 

of the International Monetary Fund (the Fund) to expand the resources of the New 

Arrangements to Borrow, established pursuant to the decision of January 27, 1997 

referred to in paragraph (1) above, the Secretary of the Treasury is authorized to make 

loans, in an amount not to exceed the dollar equivalent of 28,202,470,000 of Special 

Drawing Rights, in addition to any amounts previously authorized under this section; 

except that prior to activation of the New Arrangements to Borrow, the Secretary of the 

Treasury shall report to Congress whether supplementary resources are needed to 

forestall or cope with an impairment of the international monetary system and whether 

the Fund has fully explored other means of funding to the Fund.”. 

(C) by striking, in paragraph (5), as amended (Public Law 114-113), “December 16, 2022”; 

and adding at the end the following: “December 31, 2025” 

(2) in subsection (e)(1) – 

(A) by including, after “...required by paragraphs (a)(1), (a)(2)” the addition of “, and 

(a)(3)”.

Multilateral Development Bank Replenishments 

SEC. 7067. 

 (a) The International Development Association Act, Public Law 86–565, as amended (22 

U.S.C. §§ 284 et seq.), is further amended by adding at the end thereof the following new 

section: 

 "Sec. 31. Nineteenth Replenishment. 

 "(a) The United States Governor of the International Development Association is authorized to 

contribute on behalf of the United States $3,004,200,000 to the nineteenth replenishment of the 

resources of the Association, subject to obtaining the necessary appropriations. 

 "(b) In order to pay for the United States contribution provided for in subsection (a), there are 

authorized to be appropriated, without fiscal year limitation, $3,004,200,000 for payment by the 

Secretary of the Treasury." 

 (b) The African Development Fund Act, Public Law 94–302, as amended (22 U.S.C. §§ 

290g et seq.), is further amended by adding at the end thereof the following new section: 

 "Sec. 226. Fifteenth Replenishment. 

 "(a) The United States Governor of the Fund is authorized to contribute on behalf of the 

 

1

 The sections of authorization language below are included in the General Provisions, which can be found in the Department of 

State and Other International Programs chapter of the Appendix of the President’s FY2021 Budget.” 
Treasury International Programs

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United States $513,900,000 to the fifteenth replenishment of the resources of the Fund, subject to 

obtaining the necessary appropriations. 

 "(b) In order to pay for the United States contribution provided for in subsection (a), there are 

authorized to be appropriated, without fiscal year limitation, $513,900,000 for payment by the 

Secretary of the Treasury."

International Finance Corporation 

SEC. 7068. The International Finance Corporation Act, Public Law 84-350, as amended (22 

U.S.C. 282 et seq.), is further amended by adding at the end thereof the following new section: 

“Sec. 18. Capital Increases and Amendment to the Articles of Agreement. 

(a) Votes Authorized.—The United States Governor of the Corporation is authorized to vote in 

favor of— 

(A) a resolution to increase the authorized capital stock of the Corporation by 

16,999,998 shares, to implement the conversion of a portion of the retained earnings of the 

Corporation into paid-in capital, which will result in the United States being issued an 

additional 3,771,899 shares of capital stock, without any cash contribution; 

(B) a resolution to increase the authorized capital stock of the Corporation on a general 

basis by 4,579,995 shares; and 

(C) a resolution to increase the authorized capital stock of the Corporation on a selective 

basis by 919,998 shares. 

(b) Amendment of the Articles of Agreement.—The United States Governor of the Corporation is 

authorized to agree to and accept an amendment to Article II, Section 2(c)(ii) of the Articles of 

Agreement of the Corporation that would increase the vote by which the Board of Governors of 

the Corporation may increase the capital stock of the Corporation from a four-fifths majority to 

an eighty-five percent majority.”. 

African Development Bank Capital Increase 

SEC. 7069. The African Development Bank Act, Public Law 97–35, as amended (22 U.S.C. §§ 

290i et seq.), is further amended by adding at the end thereof the following new section: 

‘‘SEC. 1345. SEVENTH CAPITAL INCREASE. 

‘‘(a) SUBSCRIPTION AUTHORIZED.— 

‘‘(1) The United States Governor of the Bank may subscribe on behalf of the United States to 

532,023 additional shares of the capital stock of the Bank. 

‘‘(2) Any subscription by the United States to the capital stock of the Bank shall be effective only 

to such extent and in such amounts as are provided in advance in appropriations Acts. 

‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.— 

‘‘(1) In order to pay for the increase in the United States subscription to the Bank under 

subsection (a), there are authorized to be appropriated, without fiscal year limitation, 

$7,286,587,008 for payment by the Secretary of the Treasury. 

‘‘(2) Of the amount authorized to be appropriated under paragraph (1)— 

‘‘(A) $437,190,016 shall be for paid in shares of the Bank; and 

‘‘(B) $6,849,396,992 shall be for callable shares of the Bank.’’. 
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Debt Relief 

SEC. 7066. Of the funds appropriated in this and prior Acts making appropriations for the 

Department of State, Foreign Operations, and Related Programs, except for funds designated for 

Overseas Contingency Operations/Global War on Terrorism pursuant to section 251(b)(2)(A)(ii) 

of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, funds may be 

transferred to, and merged with, funds available under the heading “Department of the Treasury 

– Debt Restructuring” in title III of this Act, to remain available until expended, for the cost, as 

defined in section 502 of the Congressional Budget Act of 1974, of modifying loans and loan 

guarantees, as the President may determine, or for the cost of selling, reducing, or cancelling 

amounts owed to the United States as a result of loans made to any country, in the event that the 

country meets the domestic and internationally-agreed conditions and the transfer or merger is 

consistent with the U.S. law and foreign policy considerations.