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PRESS RELEASE July 22, 2021

World Bank Approves New Reference Rates for Existing and New Loans in Preparation for End of LIBOR

WASHINGTON, July 22, 2021—The World Bank's Board of Executive Directors today approved modifications for new and existing loans that will switch over to new market reference rates in preparation for the global transition away from the London Interbank Offered Rate (LIBOR). The modifications imply changes to the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) new and existing loans.

The alternative reference rates will be Secured Overnight Financing Rate (SOFR) for USD-denominated loans, Sterling Overnight Index Average (SONIA) for GBP-denominated loans, and Tokyo Overnight Average Rate (TONA) for JPY-denominated loans. EURIBOR will remain the reference rate for EUR-denominated loans.


Effective from January 1, 2022, New variable-spread loans IBRD Flexible Loans (IFLs) will be offered in

  • USD based on the Secured Overnight Financing Rate (SOFR);
  • GBP based on the Sterling Overnight Index Average (SONIA); and
  • JPY based on the Tokyo Overnight Average Rate (TONA).

The decision comes after the Board of Executive Directors approval on January 26, 2021 to suspend the offering of the fixed-spread loans.



  • Reference rates for variable-spread loans will be replaced with the same reference rates listed above: SOFR for USD loans; SONIA for GBP loans, TONA for JPY loans. For existing variable-spread loans in EUR LIBOR, the reference rate will be replaced with EURIBOR, effective January 1, 2022.


  • Reference rates for fixed-spread loans in GBP, JPY and EUR will be replaced with the same reference rates listed above effective January 1, 2022.
  • Reference rates for fixed-spread loans in USD will be replaced with SOFR, effective July 1, 2023.

The adoption of new reference rates for new and existing loans by the World Bank follows the timetable established by LIBOR´s regulator, the United Kingdom Financial Conduct Authority, for LIBOR discontinuation.

The approved modifications will allow the World Bank to continue serving its clients with the financial model that is mutually beneficial to the Bank and its borrowers.



In Washington:
Fernanda Zavaleta
(202) 413-1682
For Broadcast Requests
David W. Young
(202) 473-4691