Aims as well as Objectives of IDA
The nous objective of the IDA has been to furnish fiscal assistance to Less Developed Countires (LDCs) on soft loan basis, which way on price imposing a lower servicing accuse on loans than on conventional loans yesteryear the World Bank to its fellow member countries.
IDA has given loans to LDCs at 3/4 per cent charge per unit of measurement of Interest. Another of import expression of IDA loans is that the loans tin last repaid inwards loan currencies of borrowing countries. This ensures that the IDA loans create non convey adverse number on residual of payments of the LDCs.
IDA lends to those countries that had gross national income (GNI) per capita non morethan $1,175 (in 2010 dollars).
Membership of the IDA
It is provided that whatever fellow member province of World Bank tin teach a fellow member of the IDA, provided that a province is create to subscribe the IDA at the charge per unit of measurement of 5 per cent of its existing World Bank part working capital missive of the alphabet subscription quota. At acquaint the IDA has 172 fellow member countries which pay contributions every 3 years every bit replenishments of its capital. The IDA lends to 81 borrowing countries, nearly one-half of which are inwards Africa. South Sudan is the newest fellow member of IDA (joined on 18th Apr 2012).
The full subscriptions as well as contributions of IDA aggregated at $41.879 million. Subscriptions are payable inwards v installments. For purpose of subscription, distinction has been made betwixt the to a greater extent than industrialized component division (1) as well as less developed component division (2) countries. The developed countries convey been designated every bit component division 1 countries as well as the ease of the countries convey named every bit less developed countries as well as included inwards component division 2.
Bharat as well as IDA
Bharat has immensely benefited cast the credits granted to her yesteryear the IDA. Upto 30th June 1987, she had received massive credit assistance of $14,508 1000000 inwards the cast of 174 credits to finance her diverse evolution projects. This is yesteryear far the largest credit assistance that the IDA has given to whatever unmarried fellow member province then far. Recently on 23rd July 2014, recognizing that Bharat notwithstanding needs to elevator around 270 1000000 people out of poverty, the International Development Association (IDA) donors convey agreed to furnish $3.4 billion over the side yesteryear side 3 years every bit transitional support.
List of Top 10 IDA Borrowers 2014
FY14 Top 10 IDA Borrowers
Where create IDA resources come upwardly from ?
The largest root of IDA resources is novel contributions from donor countries. This accounts for nigh to a greater extent than than one-half of the US$ 33 billion which volition last made available to IDA borrowers durign the 3 twelvemonth menses of IDA 14. The mo largest resources, which include repayments from graduated as well as electrical flow IDA borrowers, investment income, as well as other resound residual resources from yesteryear replenishments. An additional root of funds is transfers from IBRD net income.
Fast Facts of IDA
- Formed inwards – eighth Nov 1960
- Head Quarters – Washington, D.C
- Members – 172 Countries
- Newest Member – South Sudan (18th Apr 2012)
- Parent Organization – World Bank
- President – Jim Yong Kim (President of the World Bank)
- Largest Borrower – India
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