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If Development Finance Institutions Are Providing Aid, They Should Act Accordingly

How should member countries of the OECD's Development Assistance Committee classify their support to private sector investments in developing countries though development finance institutions? Either way, donors have decided that DFIs are in the aid business. And that means that DFIs should follow the principles of effective aid that DAC donors have signed up to.

Projected IDA allocations under scenario 4, with grants rising to 59%

More World Bank Borrowers Will Need Grants, Not Loans. As a Result, More World Bank Donors Will Need to Pony Up

Rather than providing relief on repayments from existing loans, IDA’s debt sustainability framework adjusts future financing from loans to grants for countries at high risk of debt distress. But what happens to IDA’s loans-to-grants model when a large number of IDA countries trigger the risk thresholds? Can IDA afford its commitment to debt sustainability?