World Bank Loan Terms and Conditions

The interest rate consists of a market-based variable reference rate and a spread (variable or fixed). A one-time initial fee of 0.25% is charged on the amount of the loan committed, and a commitment fee of 0.25% per year, paid semi-annually, is levied on undisbursed balances incurred sixty days after the signing of the loan agreement. Countries are divided into four price groups based on income and other factors. Please refer to the IBRD Flexible Loan PRICING Basics Note for information on IBRD loan rates and fees in USD, EUR, JPY and GBP or view our loan rates and fees. On January 1, 2022, the World Bank began the transition to new benchmark rates from the London Interbank Offered Rate (LIBOR). To apply for a credit conversion, borrowers should refer to the Bank`s Banking Directive and the Bank`s Conversion Guidelines and complete the relevant conversion forms below and send them to loanclientservices@worldbank.org. Note: For loans with a Libor/Euribor+ spread of less than zero during the current interest period, transaction fees are calculated on a case-by-case basis. If you have any questions about APIs, please contact the World Bank Group at data@worldbankgroup.org. Note: IFLs with a variable spread that are subject to the terms and conditions of July 31, 2010 or earlier require an amendment to the loan agreement to set and cancel the reference rate or apply a cap or collar for the reference portion of the loan rate while maintaining the variable spread.

The base adjustment takes into account notional interest rate differences between currencies. For each individual credit in a single currency with a fixed interest rate, the basic adjustment plus the standard fee for that credit shall be equal to the fee in a single currency. The base adjustment is applied to ensure that the present value of the total cash flows of the single currency loan is equal to the present value of the corresponding SDR loan (since market swap rates beyond the 10-year term are not available for the Chinese yuan, estimated values based on available market data are used to calculate the interest rates of the loan in a single currency for regular and mixed maturities). Please note that the base adjustment for IDA service charges cannot be less than zero, as IDA applies a lower limit of 75 basis points for single currency credit service charges for all currencies. 3. The variable margin in relation to the reference rate may be replaced by a fixed margin higher than the reference rate, but not the other way around. Such a „fixing“ of the variable spread is based on the fixed spread that applies to the loan in effect at the time of application. The fixed spread of the converted loan consists of: 5.

Interest on the IBRD loan includes a standard credit spread that includes a contractual spread of 0.50% and an annual term premium. The loan interest rate also includes a fee to cover the costs of financing the loans against the benchmark rate and a market risk premium (for fixed spreads). The prices of DDO payments shall be fixed at the deviation in force above the reference rate at the time of the levy. From 1 July 2018, a surcharge of 50 basis points per year will be applied to credit balances exceeding the threshold limit for individual borrowers. The following interest rates apply to loans that meet both conditions: The suspension does not apply to transactions that meet both of the following conditions: (i) the invitation to trade will be issued no later than January 26, 2021; and (ii) IBRD Administrators approve the loan by June 30, 2021. For loans that meet both conditions, you can find fixed spread loan interest rates for applicable prices on the Suspended page. As of July 1, 2018, IBRD loans are subject to different maturities based on income and other factors. Countries are divided into one of four price groups: A, B, C or D. 1. The duration of all IDA appropriations approved by the Council until 30 June 1987 is 50 years.

The duration of IDA appropriations approved by the Council between 30 June 1987 and 30 June 2011 is 35 or 40 years. The duration of the period from 1 July 2011 to 30 July 2011. Loans approved in June 2014 are 25 or 40 years. 2. IDA loans shall include an acceleration clause providing for a doubling of principal payments by creditworthy borrowers if per capita income exceeds the eligibility thresholds. IDA loans on tighter terms (approved during IDA13-IDA15) and non-concessional loans are exempt from accelerated repayment provisions. 3. The blending conditions shall apply to mixed countries and IDA countries whose GNI per capita has exceeded the operational limit for more than two consecutive years and shall be referred to as `deficit countries`. For some small states and small island economies (i.e. conditions for small economies), an exemption from the operational GNI ceiling for IDA eligibility was made because of their vulnerability. 4. The payment dates for debt service are the 1st or the 15th.

Day of one month and then semi-annually, as determined by the beneficiary during the credit negotiation. .