**Definition**

"Concessionality"

The degree of concessionality of a loan is measured by its “grant element”. The grant element is defined as the difference between the loan’s nominal value (face value) and the sum of the discounted future debt-service payments to be made by the borrower (present value), expressed as a percentage of the loan’s face value. Whenever the interest rate charged for a loan is lower than the discount rate, the present value of the debt is smaller than its face value, with the difference reflecting the (positive) grant element of the loan.

"Grace period"

It is defined as an interval between the commitment date and the date of the first payment of principal (DAC, OECD).

"Interval"

It is defined as an "interval between the commitment date and the first repayment date minus the interval between two successive repayment" (DAC, OECD).