Good news!
A few days ago, The World Bank (IBRD) announced a package of financial measures to enhance its value proposition, expand its financial capacity, and reduce our clients’ borrowing costs to better meet their needs, especially in these times of multiple crises.
To boost our lending capacity, IBRD secured an additional percent reduction in our minimum Equity-to-Loans ratio (from 19% to 18%) by packaging this with a new set of measures and protections to safeguard our triple-A rating.
Adding further lending capacity potential, 𝗜𝗕𝗥𝗗 𝗶𝘀 𝗮𝗹𝘀𝗼 𝗻𝗼𝘄 𝘁𝗵𝗲 𝗳𝗶𝗿𝘀𝘁 𝗠𝗗𝗕 𝘁𝗼 𝗶𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗖𝗮𝗹𝗹𝗮𝗯𝗹𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹, a new tool that allows this type of callable capital to be used like equity and accessed sooner in extreme circumstances.
Also, to facilitate IBRD’s support to countries in addressing complex development challenges, the IBRD’s Board of Executive Directors has approved significant changes to make our loans easier to obtain and cheaper to repay. Client countries can now pre-pay without extra costs and a new grace period has been created before commitment fees are charged on undisbursed balances. We also expanded access to our best rates to the most vulnerable small states.
Learn more in the press release>
https://lnkd.in/eDJ4i7YX
George Richardson
The World Bank Group plans to boost lending capacity and make IBRD loans more affordable, potentially enabling over $150 billion in additional financing over 10 years by lowering the Equity-to-Loans ratio to 18% and removing some fees. https://lnkd.in/gkDTjNGZ
