Loans

ADF countries have grown increasingly diverse in terms of their incomes, economic structures, natural resource bases, inequality and socio-economic development. This growing diversity has prompted a change in the way the ADF supports its member countries. During the Thirteenth General Replenishment of the ADF (ADF-13), ADF Deputies agreed that ADF resources will continue to be channeled to the poorest countries and endorsed the following new country groupings and differentiated hardened financing terms:

  • Country Classification.  The ADF-only countries will fall into two sub-groups (“Regular” and “Advance” ADF-only countries) based on their Gross National Income (GNI) per capita. The countries with a GNI per capita above the average of all ADF-only countries are included in the “Advance” group, and all countries with a GNI per capita below the average are in the “Regular” group.
  • Differentiated and Hardened Financing Terms.  Differentiated ADF loan financing terms will be applied between regular and advance ADF-only countries, and blend, gap and graduating countries.  The new lending terms will be applied only to new ADF loans starting ADF-13.  

The following table presents the differentiated financing terms for ADF loans

Country Classification

Maturity

(Years)

Grace Period (Years)

Service charge (%)

Commitment Fee (%)

Interest rate

(%)

ADF-Only

Regular

40

10

0.75

0.50

0

Advance

40

5

0.75

0.50

0

Blend, Gap and Graduating

30

5

0.75

0.50

1%