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IDA Credits

IDA Credits. Purpose. IDA only supports projects with a clear development purpose To maximize the use of scarce concessional resources, IDA prefers not to support projects that could be sustainably financed from private capital. 

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IDA Credits

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  1. IDA Credits

  2. Purpose • IDA only supports projects with a clear development purpose • To maximize the use of scarce concessional resources, IDA prefers not to support projects that could be sustainably financed from private capital.  • But IDA often works to create the conditions for private capital, including technical assis-tance, and supports pilot projects that can subsequently be scaled-up by the private sector.

  3. IDA Terms • IDA Terms are highly concessional, with no interest, a 35-40 year repayment period includ-ing a ten year grace period, and very low fees. • Mozambique is likely to remain IDA eligible for some years, as countries continue to be eligible for IDA up to (and sometimes beyond) a per capita income of $1,025 (Mozambique’s per capita income is $310)

  4. Blending IDA and IBRD • Mozambique is not yet creditworthy for the Bank’s non-concessional lending window, IBRD. • If Mozambique becomes creditworthy before it reaches a per capita income of $1,025, it can receive a blend of both IDA and IBRD

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