The International Development Association (IDA) is the part of the World Bank that helps the low-income countries. Established in 1960, IDA complements the World Bank’s original lending arm—the International Bank for Reconstruction and Development (IBRD). IDA's grants and low-interest loans help countries invest in their futures, improve lives, and create safer, more prosperous communities around the world. IDA is one of the largest sources of assistance for the world’s 75 low-income countries and is the single largest source of donor funds for basic social services in these countries.
IDA lends money on concessional terms. This means that IDA credits have a zero or very low interest charge and repayments are stretched over 30 to 40 years. More than half of IDA countries receive all, or half, of their IDA resources on grant terms, which carry no repayments at all. These grants are targeted to the low-income countries at higher risk of debt distress.
IDA has historically been funded largely by contributions from the governments of its member countries. Donors meet every three years to replenish IDA resources and review its policy framework. The most recent replenishment of IDA’s resources, the twentieth (IDA20), was finalized in December 2021, resulting in a historic $93 billion financing package for IDA countries for fiscal years 2022-2025.
In addition to concessional loans and grants, IDA provides significant levels of debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI).
In the fiscal year ending June 30, 2023, IDA commitments totaled $34.2 billion, of which $7.3 billion in grants. Africa region received 75 percent ($25.8 billion) of the total commitments. Since 1960, IDA has provided $533 billion to 115 countries. Annual commitments have increased steadily and averaged about $36 billion over the last three years (FY21-FY23).
Thirty-six countries have graduated, and many have become IDA donors, including China, Chile, India, South Korea, and Turkey.
Last Updated: Apr 10, 2024