Regional Distribution of IBRD and IDA Lending

Sectoral Distribution of IBRD and IDA Lending

Where the World Bank Got Its Money in Fiscal 2000 . . .

International Bank for Reconstruction and Development

• In fiscal 2000, IBRD raised $15.8 billion in international debt capital markets. Borrowings and shareholder equity fund IBRD’s loans and investments.

• The year’s funding volume was below that of fiscal 1999, after peaking in fiscal 1998 due to above-average demand for financing.

• IBRD continued to borrow at favorable costs. IBRD’s financial strength is based on the support it receives from its shareholders and on its array of financial policies and practices.

• IBRD issued debt in 13 currencies and in a wide range of maturities and structures in fiscal 2000. Diversification helps lower borrowers’ funding costs and expand the Bank’s investor base.

• Already a leader in emerging capital markets, IBRD launched its first Mexican peso and Chilean peso bond issues in fiscal 2000.

• A $3 billion electronic bond offering in January 2000 marked another first, continuing IBRD’s tradition of innovation, financial strength, and flexibility to meet investor needs.

International Development Association

• Fiscal 2000 marked the first of three years under "IDA-12," the 12th Replenishment of IDA agreed upon by donors in November 1998. IDA-12 permits new IDA lending of approximately $20.5 billion in fiscal 2000–02, which is in line with recent levels.

• The 12th Replenishment included $11.6 billion of new donor funds and a $0.9 billion contribution from IBRD Net Income. The remainder, $8.0 billion, came from IDA’s own funds, primarily from repayments of past credits and investment income.

• Nearly 40 countries are IDA donors. Donor nations include not only industrial countries but also developing and transition countries—some of them former IDA borrowers—such as Argentina, Botswana, Brazil, Hungary, Republic of Korea, the Russian Federation, and Turkey.

• IDA’s finances are managed in a prudent and conservative manner. Its financial strength is based on a strong and continued support from its donors as well as the increasing level of repayments from maturing "credits" (the term applied to IDA loans).

…And where it went

The World Bank is the world’s largest single source of development assistance to reduce poverty globally. A strong financial institution, it is able to leverage its shareholder capital several-fold to make available long-term development resources for IBRD lending on terms that the market would not have provided. Resources for IDA lending to poor countries—mostly without access to capital markets—are leveraged from shareholders’ contributions. Bank lending also plays an important catalytic role, helping mobilize additional resources from cofinanciers or client governments to support common development objectives.

New lending of $15.3 billion in fiscal 2000 was below the record levels in fiscal 1998–99, as IBRD borrowers emerged from financial crisis. Lending declined in every region except Africa. Latin America and the Caribbean was the largest borrowing region ($4 billion). Poverty reduction continues to drive lending, with 22 percent of lending directed to human development. Improvements in project quality through greater selectivity, enhanced consultation, and strengthened preparation and supervision has meant that billions of dollars for borrowers’ projects are used more effectively. Nine out of 10 new projects were rated satisfactory on preparation in calendar 1999, compared with 7 out of 10 in calendar 1996.