Question 31
HardOriginal questionWithin the World Bank Group, the arm that lends on concessional terms to the poorest countries is
Show the answer and explanation
Correct answer: A
Explanation
The International Development Association lends to the poorest countries on concessional terms — very long maturities and little or no interest.
The IBRD, the original Bretton Woods institution, lends to middle-income countries on terms closer to the market.
The IFC lends to the private sector and MIGA provides guarantees against political risk, so neither is a concessional lender to governments.
Worth noting
"World Bank" in ordinary use means the IBRD and the IDA together. The other three members of the Group are separate institutions with separate purposes.
- Concept
- The parts of the World Bank Group
- Typical timeTypical
- 50 s
- Your timeYours
- —
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