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Development Finance (DFi)

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IDA Resource Mobilization and IBRD Corporate Finance

  • DFi is responsible for the replenishment and stewardship of the International Development Association (IDA), the Bank’s principal facility for providing highly concessional resources to the world’s poorest countries. IDA replenishments take place every three years. 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. The financing package is the largest ever mobilized in IDA’s 61-year history. 
  • IDA resources are highly concessional and are provided in the form of grants and zero to low-interest credits (loans). DFi manages the allocation of IDA resources to eligible countries and monitors the implementation of IDA policy mandates within the Bank.
  • DFi is also responsible for managing IDA’s financial operations which include: developing financial projections for each replenishment; managing the fund’s liquid assets; implementing IDA’s hedging strategy; setting various financial parameters of IDA; managing payments and encashments from IDA’s members, including donor commitments as well as IDA capital transactions related to all IDA members; and administering the financing of IDA’s Multilateral Debt Relief Initiative.
  • On IBRD, DFi is charged with managing capital and earnings in line with the institution's financial policies and development objectives. The unit supports senior managers and the World Bank Group Board in IBRD’s financial management by recommending policies and strategies related to medium-term capital planning, overall balance sheet management, and annual decisions on loan terms and income allocation. This includes:
  • Monitoring the Bank's income and balance sheet variables and key sensitivities over the near term and the medium term;
  • Managing the Bank’s strategic capital adequacy and developing strategies for optimal use of capital;
  • Determining balance sheet management approaches that support the development mission and the institution’s financial strength; and
  • Assuring capacity to understand and resolve issues of income allocation, financial product pricing, and capital structure and adequacy.