PowerPoint Presentation Economic Growth and development in Southeast Asia

IDA provides aid through grants and highly concessional loans

• Donor countries (primarily DAC but increasingly others) contribute funds to IDA (referred to as IDA replenishment), which are used to provide concessional loans and grants to IDA eligible countries
• IDA eligible – GNI per-capita less than $1215 (2015)
• IDA gives grants plus loans on concessional terms e.g. 25-38 year repayment period, 5 year grace period, initiation fee of only .75%, low interest schedule
• Annual lending envelopes determined by Country Policy and Institutional Assessments (CPIAs)
• But there is a lot of momentum in the system, process not transparent
• Currently 59 IDA only countries, 18 blend countries (based on creditworthiness), plus India (can access IDA on “exceptional basis” through 2017)
• Several countries that receive high ODA are included on the “blend” list i.e.
• Ethiopia, Pakistan, Nigeria, Vietnam, Zimbabwe
• Countries with the biggest “exposure” (outstanding IDA loans and commitments)
• China, Brazil, Turkey, India, and Indonesia (concessionary, no rush to repay)