Debt | International Development Association - World Bank | International Development Association

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response[i].CmuName; url1 = response[i].URL; var splitUrl = url1.split('/'); // console.log(splitUrl); // $("#dropdownlist").append('<li><a class="dropdown-item" href="'+response[i].URL'">'+response[i].Country+'</a></li>'); // $("#dropdownlist").append('<li><a class="dropdown-item" href="'+splitUrl[2]+'.html">'+countryName+'</a></li>'); if(runMode.indexOf("author") != -1){ if(currentPage.includes("/country")){ $("#dropdownlist ").append('<li><a class="dropdown-item" href="'+splitUrl[2]+'.html">'+countryName+'</a></li>'); }else{ $("#dropdownlist ").append('<li><a class="dropdown-item" href="'+"debt/country/"+splitUrl[2]+'.html">'+countryName+'</a></li>'); } } else{ if(currentPage.includes("/country")){ $("#dropdownlist ").append('<li><a class="dropdown-item" href="'+splitUrl[2]+'">'+countryName+'</a></li>'); }else{ $("#dropdownlist ").append('<li><a class="dropdown-item" href="'+"debt/country/"+splitUrl[2]+'">'+countryName+'</a></li>'); } } } }) </script> <style> /* added for debt page 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</li> </ul></div><li class = "lp__leftnav_listitem active "><a id="sr__leftnav" class="lp__leftnav_listlink " aria-current="page" href="/en/financing/debt">Debt</a> <button data-toggle="collapse" data-target="#collapse" aria-expanded="true" class="lp__leftnav_accordion_btn " aria-labelledby="sr__leftnav"></button>  <div class="lp__leftnav_sublist collapse show" id="collapse" role="region" aria-labelledby="sr__leftnav" data-parent="#sr__leftaccordion"> <ul > <li> <a href="/en/financing/debt/debt-sustainability-grants">Debt Sustainability & Grants</a> <li> <a href="/en/financing/debt/sustainable-development-finance-policy">Sustainable Development Finance Policy</a> <li> <a href="/en/financing/debt/core-principles-sustainable-financing">Core Principles of Sustainable Financing</a> <li> <a href="/en/financing/debt/grant-element-calculations">Grant Element Calculations</a> <li> <a href="/en/financing/debt/grant-element-calculator">Grant Element Calculator</a> </li> </ul></div><li class = 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Projects</a> <li> <a href="/en/financing/ida-private-sector-window/risk-mitigation-facility-rmf">Risk Mitigation Facility (RMF)</a> <li> <a href="/en/financing/ida-private-sector-window/blended-finance-facility-bff">Blended Finance Facility (BFF)</a> <li> <a href="/en/financing/ida-private-sector-window/local-currency-facility-lcf">Local Currency Facility (LCF)</a> <li> <a href="/en/financing/ida-private-sector-window/miga-guarantee-facility-mgf">MIGA Guarantee Facility (MGF)</a> <li> <a href="/en/financing/ida-private-sector-window/psw-papers">Private Sector Window Papers</a> </li> </ul></div><li class = "lp__leftnav_listitem "> <a id="sr__leftnav" class="lp__leftnav_listlink " href="/en/financing/resource-management">Resource Management</a> <button data-toggle="collapse" data-target="#collapse" aria-expanded="false" class="lp__leftnav_accordion_btn " aria-labelledby="sr__leftnav"></button>  <div class="lp__leftnav_sublist collapse " id="collapse" role="region" aria-labelledby="sr__leftnav" data-parent="#sr__leftaccordion"> <ul > <li> <a href="/en/financing/resource-management/ida-resource-allocation-index">IDA Resource Allocation Index (IRAI)</a> <li> <a href="/en/financing/resource-management/ida-country-performance-ratings">IDA Country Performance Ratings (CPR)</a> <li> <a href="/en/financing/resource-management/fcv-envelope">Fragility, Conflict and Violence Envelope</a> </li> </ul></div> </li> </ul> </div> </div> </nav> </div> </div></div> </div> </div> </div> </div> <div class="col-md-8 colsplit 2"> <div class=" " > <div class="grid_8_par_1 parsys"> <div style="padding-left:0px;padding-right:0px;" class="remove-padding-grid" > <div class="redesign_title parbase section"> </div> <div class="redesign_static_content section">   <section > <article class="lp__body_content section " > <p>The World Bank Group (WBG) works closely with client countries to ensure that their debt burdens do not overwhelm their ability to reduce poverty or provide essential government functions. For countries eligible for financing under IDA, these activities are financed through the <a href="http://www.worldbank.org/en/topic/debt/brief/debt-management-facility">Debt Management Facility</a> (DMF), a WBG trust fund dedicated to strengthening debt-management capacity in developing countries.</p><p><strong>Debt Sustainability & Grants</strong></p><p>The World Bank Group and the IMF work with low-income countries to produce regular Debt Sustainability Analyses, which are structured examinations of developing country debt based on the Debt Sustainability Framework. Our two institutions use this framework to guide the borrowing decisions of low-income countries in a way that balances their financing needs with their ability to repay—both in the present and in the future. IDA translates debt distress risk ratings into "traffic lights", which then determine the share of IDA grants and highly concessional IDA credits for each country. IDA-only countries at high risk or in debt distress (red light) can benefit from 100% grants while at moderate (yellow light) and low (green light) risk of debt distress countries cannot benefit from grants (except for IDA-only Small States at moderate risk of debt distress that are eligible for 50% grant financing as well as countries that receive financing from the IDA Window for Host Communities and Refugees). By boosting the share of grants for countries at risk of debt distress, IDA helps restore or maintain external debt sustainability and prospects for future assistance.</p><p><strong>Sustainable Development Finance Policy (SDFP)</strong></p><p>All IDA countries are subject to the Sustainable Development Finance Policy (SDFP) , which incentivizes sustainable borrowing and promotes coordination between IDA and other creditors. The policy has two pillars: (1) the Debt Sustainability Enhancement Program (DSEP) to help IDA countries address debt vulnerabilities through incentives and policy actions; and (2) the Program for Creditor Outreach (PCO) to facilitate information sharing, dialogue and coordination among creditors to help address debt-related risks, building on IDA’s global platform and convening role.</p><p><i>For more information about the SDFP:</i></p><p><a href="https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099051223181026929/bosib01e8c98f40540bbae09988e836d31f">Sustainable Development Finance Policy: Mid-Term Implementation Review</a> (April 2023)</p><p><a href="http://documents.worldbank.org/curated/en/296411555639304820/pdf/Debt-Vulnerabilities-in-IDA-Countries-Policy-Options-for-IDA19.pdf">Addressing debt vulnerabilities in IDA countries</a></p><p><strong>Concessionality & Grant Element Calculations<br> </strong>Low-income countries can evaluate the level of concessionality of the loan portion of WBG assistance (also known as ‘grant element’) using the online <a href="/en/financing/debt/grant-element-calculations/grant-element-calculator /en/financing/resource-management/grant-element-calculator">grant element calculator</a>.</p> <p>Last Updated: May 16, 2023</p></article></section> <div class="clearfix"></div> </div> </div> </div> </div> </div> <div class="col-md-1 colsplit 2"> <div class=" " > <div class="grid_1_par_2 parsys"> <div style="padding-left:0px;padding-right:0px;" class="remove-padding-grid" > </div> </div> </div> </div> </div> <div class="clearfix" aria-hidden="true"></div> <div style="margin-bottom: 0px"></div> </div> </div> </div> </div> </div> </div> </div> </main> <footer> <div class="footer idaFooter"> <div class="lp__footer_top_section"> <div class="container"> <div class="row"> <div class="col-lg-8 col-md-7 col-sm-12 col-xs-12"> <div class="lp__footer_top_left"> <a href="/en/home" class="lp__navbar_brand"><img 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