While the International Bank for Reconstruction and Development (IBRD) raises most of its funds on the world's financial markets, IDA is funded largely by contributions from the governments of its richer member countries. Additional funds come from IBRD's and International Finance Corporation's (IFC) income and from borrowers' repayments of earlier IDA credits.
Donors meet every three years to replenish IDA funds and review IDA’s policies. The most recent replenishment of IDA’s resources, the sixteenth (IDA16), was finalized in December 2010, resulting in a record replenishment size of Special Drawing Rights (SDR) 32.8 billion ($49.3 billion) to finance projects over the three-year period ending June 30, 2014. This amount includes donor contributions, reflows from credit repayments and World Bank transfers. Donor contributions amounted to SDR 21.1 billion ($31.7 billion) including contributions for the Multilateral Debt Relief Initiative (MDRI) replenishment of SDR 3.5 billion ($5.3 billion), to cover IDA's debt relief costs due to the MDRI during the IDA16 disbursement period (FY12-14) as agreed under the MDRI. Reflows from credit repayments including voluntary prepayments amounted to SDR 9.7 billion ($14.6 billion). World Bank transfers from IBRD and IFC amounted to SDR 2.0 billion ($3.0 billion). Donors will meet to review the progress of IDA16 at a mid-term review meeting to be held in the fall of 2012.
To increase openness and help ensure that IDA’s policies are responsive to country needs and circumstances, representatives of borrower countries from each IDA region have been invited to take part in the replenishment negotiations since IDA13. Nine borrower representatives participated in the IDA16 negotiations. In addition, since IDA13 background policy papers are publicly released, as well as drafts of the replenishment reports before their finalization.