IBRD works with the public sector (sovereigns and sub-sovereign entities) to design and implement financial products and provide advisory services to maximize their access to financing and mitigate risks
IFL is a comprehensive financing option for public sector borrowers, including up to 35 years of maturity, market-based interest rates reflecting IBRD’s AAA credit rating, flexibility to tailor repayment terms, and embedded tools to manage currency and/or interest rate risk.
Borrowing in foreign currencies may expose clients to risk in debt and debt service payments if their local currency depreciates. The World Bank offers options to clients for converting the disbursed amounts to local currency.
The World Bank offers contingent credit lines that allows the clients to rapidly meet its financing requirements following a shortfall in resources due to adverse economic events or disaster.
The World Bank offers credit enhancement solutions to mobilize longer-term and more cost-effective private financing through project or policy based guarantees.
Depending on financing source and financing terms, clients may be exposed to currency, interest rate and/or refinancing risks, and commodity price volatility. The World Bank offers a suite of financial products and advisory services to mitigate those risks and build client capacity.
The World Bank helps public sector clients increase their financial resilience to disasters by supporting disaster risk financing programs and offering insurance solutions.