Memorandum Subject: IBRD Lending Rates and Spreads Applicable on or after January 1, 2021
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Public Disclosure Authorized From: The President January 28, 2021 Memorandum Subject: IBRD Lending Rates and Spreads Applicable on or after January 1, 2021 Rate Update Summary Public Disclosure Authorized This memorandum provides the quarterly update of IBRD’s lending rates and spreads pursuant to the standard loan pricing as defined in the Bank Policy and Directive “Financial Terms and Conditions of Bank Financing”. 1 The Variable Spreads applicable to the IBRD Flexible Loan (IFL) effective between January 1, 2021 and March 31, 2021 increased by two basis points (See Table 1). The current level of Fixed Spreads applicable to IFL is unchanged and has been in effect since July 15, 2020 (See Table 2). As the market undergoes fundamental changes due to transitions to alternative reference rates, it is not possible to robustly project IBRD’s funding spread to the market reference rate over the lifetime of loans, which is required for the pricing of fixed spread loans (FSLs). On January 26, 2021, Executive Directors approved the suspension of the offering of the Fixed-Spread IFL and related spread-fixing conversion feature, effective from April 1, 2021. 2 3 Public Disclosure Authorized I. Background IBRD promotes poverty reduction and supports sustainable economic and institutional development of member countries by providing financing and related operational assistance through its three main financing instruments – Investment Project Financing (IPF), Development Policy Financing (DPF), and Program-for- Results (PfR). IBRD currently offers financing of these instruments through one loan product, the IFL, to eligible members. 4,5 IFL is made available with a wide choice of financial terms that are tailored to the needs of the financing or the member country’s overall debt management strategy. The standard financing terms of IFL can be categorized as: Public Disclosure Authorized (i) IFL Variable Spread, featuring variable spreads over the Reference Rate, and 1 Policy “Financial Terms and Conditions of Bank Financing,” July 15, 2020, and Directive “Financial Terms and Conditions of Bank Financing,” July 15, 2020. 2 R2020-0243/2: “Proposal to Suspend the Offering of Fixed Spread Loans and Spread-Fixing Conversions in the Context of LIBOR Transition”, December 21, 2020. 3 Management recommends that the proposed suspension of the fixed-spread terms not apply to operations that meet both of the following conditions: (i) the Invitation to Negotiate is issued on or before the date this proposal is approved by the Board; and (ii) the Executive Directors approve the loan on or before June 30, 2021. 4 Aside from IFLs, there are a few historic currency pool-based products, which have been discontinued but require rate resetting in IBRD’s portfolio. The only outstanding currency pool loans (CPL) with variable rate terms are the loans to Zimbabwe, which are currently in non-accrual status. There are also IFL and CPL loans whose rates are fixed for the life of the loan through conversion and hedging. 5 In addition, IBRD offers other financial products, including conversions and hedging products, guarantees, and disaster risk financing.
2 (ii) IFL Fixed Spread, featuring fixed spreads over the Reference Rate. The Reference Rate varies by currency and currently is 6-month LIBOR for USD, JPY and GBP and 6- month EURIBOR for EUR, subject to a replacement in certain circumstances, including the outcome of the current Interbank Offered Rates (IBOR) reform. 6,7 This memorandum summarizes the lending rates and spreads currently applicable to IBRD loans with rate setting between January 1, 2021 and March 31, 2021. 8,9 II. IBRD Flexible Loan Rates and Spreads IBRD differentiates its loan pricing based on national income and other factors of each Borrower (see Annex 2) through the maturity premium. 10 Borrowers are classified into four pricing groups, whose applicable maturity premium is differentiated by exemptions, discounts or surcharges specific to each pricing group. The classification of the member countries by pricing group is updated annually and becomes effective on July 1 of each year (see Annex 2 for FY21 Country Groups for IBRD Pricing). The maturity premium schedule applies uniformly to both IFL Variable Spread and IFL Fixed Spread terms and offers Borrowers the flexibility to choose a desired maturity at the differentiated pricing level. 11 Tables 1 and 2 provide the details of the pricing group-specific maturity premium schedules. The details of rate structure and current pricing of IFLs are provided in sections A and B below. As part of the FY21 review of IBRD’s Single Borrower limit (SBL), 12 the application of IBRD’s SBL surcharge was modified. Under the modified approach there will be two surcharge thresholds, for above- 6 “Proposed Modifications to the IBRD and IDA General Conditions to add flexibility in reference rate replacement provisions,” R2018-0235, October 18, 2018. 7 The Executive Directors have approved the initiative of the omnibus amendment process with borrowers to revise the reference rate replacement provisions for loan and financing agreements governed by the pre-2018 General Conditions to be in line with the 2018 General Conditions. “Proposal to Manage IBOR Transition Risks in IBRD Loan and IDA Non-concessional financing Agreements Governed by General Conditions Prior to December 2018,” R2020-0029/1, March 3, 2020. 8 For financing provided under the World Bank COVID-19 Response, there are no change to regular loan terms, except for (1) certain waivers of the commitment and standby fees and reduction of the front-end fees for certain DDOs and (2) waivers of the standard IBRD commitment fees for certain Additional Financing projects, which are not within the scope of this memorandum. “Proposal for a World Bank COVID-19 Response under the Fast Track COVID-19 Facility,” R2020-0068, IDA/R2020-0087, March 12, 2020; “COVID-19 Strategic Preparedness and Response Program (SPRP) Utilizing the Multiphase Programmatic Approach”, R2020-0079, IDA/R2020-0098, March 27, 2020; “Proposed Additional Financing (AF) to the COVID-19 Strategic Preparedness and Response Program (SPRP) using the Multiphase Programmatic Approach (MPA),” R2020-0193 IDA/R2020-0352, October 2, 2020. 9 Under the Financial Sustainability Framework decisions for FY21, the average repayment maturity for certain operations has been limited to 8 years. “IBRD adjustment to the financial terms of certain operations in FY21,” June 30, 2020. https://worldbankgroup.sharepoint.com/sites/news/announcement/pages/board-approval-ibrd-adjustment- to-the-financial-terms-of-certain-operations-in-fy21--30062020-145527.aspx. 10 “Implementation of IBRD Pricing Measures included in 2018 Capital Package,” R2018-0128, May 31, 2018. 11 The current pricing strategy provides more flexibility compared to the income-based pricing which IBRD previously offered between 1975-2008, which limited the above-Graduation Discussion Income (GDI) countries’ access to longer maturity terms. 12 “Review of IBRD's Single Borrower Limit (SBL),” R2020-0183, September 9, 2020.
3 GDI and below-GDI countries, each defined as $2.5 billion below the SBL for that income group. 13 The SBL surcharge of 50 bp will be applicable to all countries whose exposure exceeds the surcharge threshold of their income group, not just to “SBL countries.” The surcharge will be applied when a country’s exposure exceeds the applicable surcharge threshold, on the incremental exposure in excess of the threshold. A. IFL Variable Spread The pricing principle of the IFL Variable Spread term is to pass through changes in IBRD’s funding cost to Borrowers. The IFL Variable Spread consists of the following components: = + �� �� +��� � +��� where rr = Reference Rate, which varies by currency choice; afs = average funding spread relative to the Reference Rate (rr), which is calculated every January 1, April 1, July 1 and October 1, based on the actual average funding cost incurred during the preceding six-month period; cls = contractual lending spread, approved by the Executive Directors and reviewed annually; and mp = maturity premium charged on loans based on average maturities, Borrower’s income and other factors, approved by the Executive Directors and reviewed annually. Among these components, the contractual lending spread (cls) and the maturity premium (mp) are determined at loan signing 14 and remain constant over the life of the loan; the Reference Rate (rr) and the average funding spread (afs) are determined on each interest rate reset date and are applicable for the following six months. The afs component is recalculated and announced on a quarterly basis. 15 The calculation frequency of afs does not affect the schedule of loan interest rate resets which for most loans occur on repayment dates twice a year. 13 For FY21, SBL levels are $23.5b for countries whose income level is below Graduation Discussion Income (GDI) and $20.5b for above-GDI countries. 14 In case of loans with a Deferred Drawdown Option (DDO), the components of the variable spread are determined and applied as of the date of the withdrawal. Applicable maturity premium on a withdrawal under DDO is based on the average repayment maturity of the withdrawal calculated from the date of effectiveness of the loan. 15 “Increasing the Frequency of Variable Spread Reset for IBRD IFLs” (R2017-034/1, March 8, 2017).
4 Table 1 summarizes the variable spreads currently available for new commitments as of January 1, 2021. 16 The variable spread effective between January 1, 2021 and March 31, 2021 increased by two basis points compared to the previous quarter for all maturity buckets and pricing groups. These spreads will be used for the rate setting dates between January 1, 2021 and March 31, 2021. See Figure A1-1 (Annex 1) for the historical spread analysis of IFL. Table 1. IFL Variable Spread Applicable as of January 1, 2021 (in basis points) Greater Greater Greater Greater Greater 8 years and than 8 and than 10 and than 12 and than 15 and than 18 and Average Maturity below up to 10 up to 12 up to 15 up to 18 up to 20 years years years years years Average Funding Spread 2 2 2 2 2 2 Contractual Lending Spread 50 50 50 50 50 50 Maturity Premium (Group C)1 0 10 30 50 70 90 Adjustment to Maturity Premium Group A (Exemption) 0 0 -10 -20 -30 -40 Group B (Discount) 0 0 -5 -10 -15 -20 Group D (Surcharge) 5 5 10 15 20 25 Total Spread - Current Quarter2,3,4 Group A 52 62 72 82 92 102 Group B 52 62 77 92 107 122 Group C 52 62 82 102 122 142 Group D 57 67 92 117 142 167 Total Spread - Prior Quarter2,4 Group A 50 60 70 80 90 100 Group B 50 60 75 90 105 120 Group C 50 60 80 100 120 140 Group D 55 65 90 115 140 165 Notes: 1. The maturity premium and its associated adjustments are applicable to loans for which an Invitation to Negotiate was issued (i) on or after July 1, 2018; or (ii) prior to July 1, 2018, and which have been approved on or after October 1, 2018. 2. The total spread is applicable to the loans meeting the criteria described under Note 1. The total spread does not include the SBL surcharge applicable for exposure beyond the SBL surcharge threshold of IBRD applicable to below and above-GDI country groups. 3. See Table A1-1 (Annex 1) for the complete set of spreads applicable to all active variable spread loans effective January 1, 2021. 4. The lending rate of a loan is determined based on the Reference Rate and the total spread effective on the rate setting date, subject to an implicit floor of zero percent on the overall rate. See Figure A1-1 (Annex 1) for historical IFL spreads and Figure A1-2 (Annex 1) for historical IFL rates inclusive of Reference Rates and the total spread. 16 See Table A1-1 (Annex 1) for the complete listing of the variable spreads applicable to IFLs and VSLs for rate resetting dates between January 1, 2021 and March 31, 2021.
5 B. IFL Fixed Spread The pricing principle of the IFL Fixed Spread term is to insulate Borrowers from changes in IBRD’s funding cost in return for the payment of a market risk premium. The IFL Fixed Spread consists of the following components: = + ������������������� + + + + where rr = Reference Rate, which varies by currency choice; pfs = projected U.S. dollar (USD) funding spread to the Reference Rate (rr) over the life of the loan; cls = contractual lending spread, approved by the Executive Directors and reviewed annually; mp = maturity premium charged on loans based on average maturities, Borrower’s income and other factors, approved by the Executive Directors and reviewed annually; mrp = market risk premium reflecting funding and refinancing risks of providing loans with a fixed spread; and bsa = projected basis swap adjustment (spread) applied to non-USD loans (currently EUR, GBP and JPY) to adjust the projected USD funding spread for other currencies. IBRD’s Management regularly reviews the technical components of the fixed spread—i.e., the projected funding spread (pfs), the market risk premium (mrp), and the basis swap adjustment (bsa)—to ensure that they reflect underlying market conditions. The fixed spread for a loan is determined at loan signing 17 and remains constant over the life of the loan. The current level of the technical components of the fixed spread has been in effect since July 15, 2020. On January 26, 2021, the Executive Directors approved the suspension of the offering of Fixed Spread Loans effective April 1, 2021 and the suspension of the conversion feature to convert the variable spread to a fixed spread for new and existing variable-spread loans, effective April 1, 2021. 17 In case of loans with a DDO, the components of the fixed spread are determined and applied as of the date of the withdrawal. Applicable maturity premium on a withdrawal under DDO is based on the average repayment maturity of the withdrawal calculated from the date of effectiveness of the loan.
6 Table 2 summarizes the fixed spreads available for new commitments of IFL Fixed Spread as of January 1, 2021. Table 2. IFL Fixed Spread Applicable as of January 1, 2021 (for USD-denominated Loans) (in basis points) Greater Greater Greater Greater Greater 8 years and than 8 and than 10 and than 12 and than 15 and than 18 and Average Maturity below up to 10 up to 12 up to 15 up to 18 up to 20 years years years years years Projected Funding Spread 20 25 25 30 35 35 Market Risk Premium 10 10 10 10 15 15 Contractual Lending Spread 50 50 50 50 50 50 Maturity Premium (Group C) 1 0 10 30 50 70 90 Adjustment to Standard Maturity Premium Group A Exemption 0 0 -10 -20 -30 -40 Group B Discount 0 0 -5 -10 -15 -20 Group D Surcharge 5 5 10 15 20 25 Total Spread - Current Quarter2,3 Group A 80 95 105 120 140 150 Group B 80 95 110 130 155 170 Group C 80 95 115 140 170 190 Group D 85 100 125 155 190 215 Total Spread - Prior Quarter3,4 Group A 80 95 105 120 140 150 Group B 80 95 110 130 155 170 Group C 80 95 115 140 170 190 Group D 85 100 125 155 190 215 Notes: 1. The maturity premium and its associated adjustments are applicable to loans for which an Invitation to Negotiate was issued (i) on or after July 1, 2018; or (ii) prior to July 1, 2018, and which have been approved on or after October 1, 2018. 2. The total spread is applicable to USD-denominated loans signed on or after July 15, 2020. A basis swap adjustment of - 0.15% is applicable to EUR-fixed spread, -0.35% is applicable to the JPY fixed spread, and -0.05% is applicable to GBP- fixed spread. The total spread does not include the SBL surcharge applicable for exposure beyond the SBL surcharge threshold of IBRD applicable to below and above-GDI country groups. 3. The lending rate of a loan is determined based on the Reference Rate and the total spread effective on the rate setting date subject to an implicit floor of zero on the overall rate. See Figure A1-1 (Annex) for historical IFL spreads and Figure A1-2 for historical IFL rates inclusive of Reference Rates and the total spread. 4. The total prior spread applicable as of October 1, 2020 to USD-denominated loans meeting the criteria described under Note 1.
7 III. Use of IBRD Spreads for IDA18 Non-Concessional Financing The terms of IDA’s non-concessional financing are aligned with the terms of IBRD IFLs. 18,19 Accordingly, the above described IBRD IFL rates and spreads for the pricing group A are applicable to all IDA non- concessional financing. 20,21 IV. Notification to Borrowers IBRD will notify current Borrowers, as required, of the rates and spreads (both inclusive of waivers for eligible Borrowers) applicable for the interest periods beginning on or after January 1, 2021. David Malpass World Bank Group President by Anshula Kant Managing Director and WBG Chief Financial Officer 18 For financing provided under the World Bank COVID-19 Response, there are no changes to regular loan terms, except for (1) certain waivers of the commitment and standby fees and reduction of the front-end fees for certain DDOs and (2) waivers of the standard IBRD commitment fees for certain Additional Financing projects, which are not within the scope of this memorandum. “Proposal for a World Bank COVID-19 Response under the Fast Track COVID-19 Facility,” R2020-0068, IDA/R2020-0087, March 12, 2020; “COVID-19 Strategic Preparedness and Response Program (SPRP) Utilizing the Multiphase Programmatic Approach”, R2020-0079, IDA/R2020-0098, March 27, 2020; “Proposed Additional Financing (AF) to the COVID-19 Strategic Preparedness and Response Program (SPRP) using the Multiphase Programmatic Approach (MPA),” R2020-0193 IDA/R2020-0352, October 2, 2020. 19 Under the Financial Sustainability Framework decisions for FY21, the average repayment maturity for certain operations has been limited to 8 years. “IBRD adjustment to the financial terms of certain operations in FY21,” June 30, 2020. https://worldbankgroup.sharepoint.com/sites/news/announcement/pages/board-approval-ibrd-adjustment- to-the-financial-terms-of-certain-operations-in-fy21--30062020-145527.aspx. 20 “Implementation of IDA’s Hybrid Financial Model,” IDA/R2017-0077, March 23, 2017. 21 Annex 2 of Bank Directive, “Financial Terms and Conditions of Bank Financing,” effective July 15, 2020.
8 Annex 1 Figure A1-1. Historical Trend of IFL Spreads bps Notes: 1. On June 26, 2018, IBRD’s Executive Directors approved the implementation of the pricing measures as part of the 2018 Capital Package. The maturity premium was increased for loans with average maturities longer than 10 years but exemptions, discounts, or surcharges to the maturity premium would apply to eligible countries based on income and other factors. This change came into effect on July 1, 2018. 2. The spreads after July 1, 2018 represent the spreads applicable for loans to Group C countries, which are not eligible for Exemptions, Discounts, or Surcharges to the maturity premium. 3. Periodically, Management adjusts the technical component of the fixed spread over the Reference Rate to reflect the changes in the projected funding spread. The current level of the projected funding spread has been in effect since July 15, 2020. 4. The spreads represented in both charts exclude the SBL surcharge; the spreads represented in the right chart (b) also exclude the basis swap adjustments.
9 Figure A1-2. Historical Trend of IFL Rates applied to USD Loans with Average Maturity of 18 to 20 years 6% 5% IFL FS 18-20yrs 4% IFL VS 18-20yrs 3% 2% USD 6M LIBOR 1% 0% Notes: 1. The rates after July 1, 2018 represent the rates applicable for loans to Group C countries, which are not eligible for Exemptions, Discounts, or Surcharges to the maturity premium. 2. The average maturity of 18 to 20 years indicates the maximum rates applied for each rate setting period. The rates do not include the SBL surcharge applicable for exposure above the surcharge threshold. 3. IFL FS rates are the rates made available for newly signed IFL FS commitments. The applicable rate of an outstanding IFL FS depends on the dates of Invitation to Negotiate, approval, and/or signing of the loan. IFL VS rates are the rates applied to all rate-resetting IFL VS subject to note #1. 4. USD six-month LIBOR refers to the London interbank offered rate for deposits, published two London banking days prior to the first and fifteenth day of each month.
10 Table A1-1. Variable spreads applicable to IFLs and VSLs for rate resetting between January 1, 2021 and March 31, 2021. (All spreads are in basis points.) Funding Contractual Loan Pricing Maturity Total Eligibility Criteria Cost/Cost of Lending Product Group Premium Spread/Rate* Borrowing Spread Loans for which Invitation to Negotiate A 0 52 was issued (i) on or after July 1, 2018; or (ii) prior to July 1, 2018 and which B 0 52 IFL VS 2 50 were approved after September 30, C 0 52 2018 with average maturity of 8 years or less D 5 57 Loans for which Invitation to Negotiate A 10 62 was issued (i) on or after July 1, 2018; or (ii) prior to July 1, 2018 and which B 10 62 IFL VS 2 50 were approved after September 30, C 10 62 2018 with average maturity greater than 8 years and up to 10 years D 15 67 Loans for which Invitation to Negotiate A 20 72 was issued (i) on or after July 1, 2018; or (ii) prior to July 1, 2018 and which B 25 77 IFL VS 2 50 were approved after September 30, C 30 82 2018 with average maturity greater than 10 years and up to 12 years D 40 92 Loans for which Invitation to Negotiate A 30 82 was issued (i) on or after July 1, 2018; or (ii) prior to July 1, 2018 and which B 40 92 IFL VS 2 50 were approved after September 30, C 50 102 2018 with average maturity greater than 12 years and up to 15 years D 65 117 Loans for which Invitation to Negotiate A 40 92 was issued (i) on or after July 1, 2018; or (ii) prior to July 1, 2018 and which B 55 107 IFL VS 2 50 were approved after September 30, C 70 122 2018 with average maturity greater than 15 years and up to 18 years D 90 142 Loans for which Invitation to Negotiate A 50 102 was issued (i) on or after July 1, 2018; or (ii) prior to July 1, 2018 and which B 70 122 IFL VS 2 50 were approved after September 30, C 90 142 2018 with average maturity greater than 18 years and up to 20 years D 115 167 Loans for which Invitation to Negotiate was issued prior to July 1, 2018; and IFL VS which were approved between July 1, ALL 2 50 0 52 2014 and September 30, 2018 with average maturity of 8 years or less Loans for which Invitation to Negotiate was issued prior to July 1, 2018; and which were approved between July 1, IFL VS ALL 2 50 10 62 2014 and September 30, 2018 with average maturity greater than 8 years and up to 10 years Loans for which Invitation to Negotiate was issued prior to July 1, 2018; and which were approved between July 1, IFL VS ALL 2 50 20 72 2014 and September 30, 2018 with average maturity greater than 10 years and up to 12 years
11 Loans for which Invitation to Negotiate was issued prior to July 1, 2018; and which were approved between July 1, IFL VS ALL 2 50 30 82 2014 and September 30, 2018 with average maturity greater than 12 years and up to 15 years Loans for which Invitation to Negotiate was issued prior to July 1, 2018; and which were approved between July 1, IFL VS ALL 2 50 40 92 2014 and September 30, 2018 with average maturity greater than 15 years and up to 18 years Loans for which Invitation to Negotiate was issued prior to July 1, 2018; and which were approved between July 1, IFL VS ALL 2 50 50 102 2014 and September 30, 2018 with average maturity greater than 18 years and up to 20 years Loans approved between June 30, 2010 IFL and June 30, 2014 with average ALL 2 50 0 52 VS** maturity of 12 years or less Loans approved between June 30, 2010 IFL and June 30, 2014 with average ALL 2 50 10 62 VS** maturity greater than 12 years and up to 15 years Loans approved between June 30, 2010 IFL and June 30, 2014 with average ALL 2 50 20 72 VS** maturity greater than 15 years and up to 18 years Loans for which Invitation to Negotiate was issued (i) on or after July 23, 2009; IFL VS or (ii) prior to July 23, 2009, and which ALL 2 50 N/A 52 were not approved by November 30, 2009 Loans for which Invitation to Negotiate was issued Prior to July 23, 2009, and IFL VS ALL 2 30 N/A 32 which were approved by November 30, 2009 Loans signed on or after September 28, VSL*** ALL 2 30 N/A 32 2007 Loans for which Invitation to Negotiate VSL*** was issued: On or after July 31, 1998 ALL 2 74† N/A 76 and signed before September 28, 2007 Loans for which Invitation to Negotiate VSL*** ALL 2 49† N/A 51 was issued: Prior to July 31, 1998 Notes: * Total spread does not include the SBL surcharge applicable for exposure above the surcharge threshold. ** Includes loans for which the invitation to negotiate was issued before June 30, 2014 and that have been approved by the IBRD Executive Directors on or before September 30, 2014. *** Rates do not take interest waivers into account for loans signed before September 28, 2007. Interest waivers do not apply on loans signed on or after September 28, 2007. † The contractual lending spread is adjusted to account for the different day count conventions between borrowing transactions and IBRD’s loans. Since July 1, 2008, as part of the migration into a unified loan product (IFL), all loans under the IFL, and VSLs signed on or after September 28, 2007, have a contractual lending spread that is not adjusted for day count (see “Proposal to Extend Maturity Limits for New IBRD Loans and Guarantees and to Simplify and Consolidate IBRD Loans into a Unified Single Product Line,” R2008-0007, January 18, 2008).
12 Annex 2 FY21 Country Groups for IBRD Pricing Group A: Blends, Small State Economies, Fragile and Conflict-Affected Situations, recent/new IDA graduates Angola (Recent IDA Graduate) Grenada (Small State, Blend) Seychelles (Small State) Antigua and Barbuda (Small State) India (Recent IDA Graduate) Sri Lanka (Recent IDA Graduate) Armenia (Recent IDA Graduate) Iraq (FCS) St. Kitts and Nevis (Small State) Belize (Small State) Kenya (Blend) St. Lucia (Small State, Blend) Bolivia (Recent IDA Graduate) Lebanon (FCS) St. Vincent and the Grenadines Bosnia and Herzegovina (Recent Libya (FCS) (Small State, Blend) IDA Graduate) Mauritius (Small State) Suriname (Small State) Cabo Verde (Blend, Small State) Moldova (Blend) Timor-Leste (Small State, Blend, Cameroon (FCS, Blend) Mongolia (Blend) FCS) Congo, Republic (FCS, Blend) Montenegro (Small State) Trinidad and Tobago (Small State) Dominica (Small State, Blend) Nauru (Small State) Uzbekistan (Blend) Equatorial Guinea (Small State) Nigeria (Blend) Vietnam (Recent IDA Graduate) Eswatini (Small State) Pakistan (Blend) Venezuela, RB De (FCS) Fiji (Blend, Small State) Palau (Small State) Zimbabwe (FCS, Blend) Georgia (Recent IDA Graduate) Papua New Guinea (FCS, Blend) Group B: Countries below Graduation Discussion Income (GDI) Albania Guatemala Peru Algeria Indonesia Philippines Azerbaijan Iran, Islamic Republic of Serbia Belarus Jamaica South Africa Colombia Jordan Thailand Ecuador Morocco Tunisia Egypt, Arab Republic of Namibia Turkmenistan El Salvador North Macedonia Ukraine Gabon Paraguay Group C: Countries above GDI and below High-Income Category Argentina Costa Rica Romania Botswana Dominican Republic Russian Federation Brazil Kazakhstan Turkey Bulgaria Malaysia China Mexico Group D: Countries in the High-Income Category Chile Panama Uruguay Croatia Poland Source: “Bank Directive, Financial Terms and Conditions of Bank Financing,” effective July 1, 2020.
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