About the data
6.11
Definitions
The table shows concessional and nonconcessional
and the Rapid Credit Facility. Eligibility is based prin-
• Total net official financial flows are disbursements
financial flows from official bilateral sources and the
cipally on a country’s per capita income and eligibility
of public or publicly guaranteed loans and credits,
major international financial institutions. The inter-
under IDA. Nonconcessional lending from the IMF
less repayments of principal. • IDA is the Interna-
national financial institutions fund nonconcessional
is provided mainly through Stand-by Arrangements,
tional Development Association, the concessional
lending operations primarily by selling low-interest,
the Flexible Credit Line, and the Extended Fund Facil-
arm of the World Bank Group. • IBRD is the Inter-
highly rated bonds backed by prudent lending and
ity. The IMF’s loan instruments have changed over
national Bank for Reconstruction and Development,
financial policies and the strong financial support of
time to address the specific circumstances of its
the founding and largest member of the World Bank
their members. Funds are then on-lent to developing
members.
Group. • IMF is the International Monetary Fund,
countries at slightly higher interest rates with 15- to
Regional development banks also maintain conces-
which provides concessional lending through its
20-year maturities. Lending terms vary with market
sional windows. Their loans are recorded in the table
Extended Credit Facility, Standby Credit Facility, and
conditions and institutional policies.
according to each institution’s classification and not
Rapid Credit Facility and nonconcessional lending
according to the DAC definition.
through credit to members, mainly for balance of
Concessional fl ows from international financial institutions are credits provided through conces-
Data for flows from international financial institu-
payments needs. • Regional development banks are
sional lending facilities. Subsidies from donors or
tions are available for 129 countries that report to
the African Development Bank, which serves Africa,
other resources reduce the cost of these loans.
the World Bank’s Debtor Reporting System. Non-
including North Africa; the Asian Development Bank,
Grants are not included in net flows. The Organisa-
reporting countries may have net flows from other
which serves South and Central Asia and East Asia
tion for Economic Co-operation and Development’s
international financial institutions.
and Pacific; the European Bank for Reconstruction
(OECD) Development Assistance Committee (DAC)
and Development, which serves Europe and Central
defines concessional flows from bilateral donors as
Asia; and the Inter-American Development Bank,
flows with a grant element of at least 25 percent;
which serves the Americas. • Concessional financial
they are evaluated assuming a 10 percent nominal
flows are disbursements through concessional lend-
discount rate.
ing facilities. • Nonconcessional financial flows are
World Bank concessional lending is done by the
all disbursements that are not concessional. • Other
International Development Association (IDA) based
institutions, a residual category, includes such insti-
on gross national income (GNI) per capita and per-
tutions as the Caribbean Development Fund, Coun-
formance standards assessed by World Bank staff.
cil of Europe, European Development Fund, Islamic
The cutoff for IDA eligibility, set at the beginning of
Development Bank, and Nordic Development Fund.
the World Bank’s fiscal year, has been $1,175 since July 1, 2011, measured in 2010 U.S. dollars using the World Bank Atlas method (see Users guide). In exceptional circumstances IDA extends temporary eligibility to countries above the cutoff that are undertaking major adjustments but are not creditworthy for International Bank for Reconstruction and Development (IBRD) lending. Exceptions are also made for small island economies. The IBRD lends to creditworthy countries at a variable base rate of six-month LIBOR plus a spread, either variable or fixed, for the life of the loan. The rate is reset every six months and applies to the interest period beginning on that date. Although some outstanding IBRD loans have a low enough interest rate to be classified as concessional under the DAC definition, all IBRD loans in the table are classified as nonconcessional. Lending by the International Finance Corporation, the
Data sources
Multilateral Investment Guarantee Agency, and the
Data on net financial flows from international finan-
International Centre for Settlement of Investment
cial institutions are from the World Bank’s Debtor
Disputes is excluded.
Reporting System and published in the World
The International Monetary Fund (IMF) makes con-
Bank’s Global Development Finance 2012, on its
cessional funds available through its Extended Credit
Global Development Finance CD-ROM, and in its
Facility (which replaced the Poverty Reduction and
Global Development Finance database.
Growth Facility in 2010), the Standby Credit Facility,
2012 World Development Indicators
373
GLOBAL LINKS
Net official financial flows