Best Practices

General Operational Policies*

FUND FOR SPECIAL OPERATIONS (FSO)

Source of Funds

Reference: Agreement Establishing the Inter-American Development Bank, Article IV, Sections 1, 2, 3
Establishment of the Fund and determination of its resources.

Purpose and Use

Reference: Agreement Establishing the Inter-American Development Bank, Article IV, Section 1
Loans made with these funds will be on terms and conditions appropriate for dealing with special circumstances arising in specific countries or with respect to specific projects.

Reference: AM–300–3 (5/72); GN–870 (6/74); AB–910 (2/83); AB–1109 (9/85);
AG–7/85 (9/85); AB–1704 (8/94)
Guidelines for applying the policy on use of FSO resources.

Reference: FP-5 (6/78); AB–1704 (8/94)
Criteria for use of FSO resources.

Reference: AB-421 (5/75); AB–448 (5/75); GP–34–2 (4/76); FN–98 (12/76); CS–211
(5/79); GP–98 (10/80); GP–98–3 (10/80); GP–98–4 (1/81); AB–1704 (8/94)
Criteria to differentiate countries for the use of FSO resources.

Reference: GP-62 (11/77); GP–63 (1/78); AB–1704 (8/94)
Criteria to determine priorities for use of the FSO, among less developed countries with limited markets.

Reference: GP–35 (8/75); GN–591–2 (8/75)
Use of unrestricted resources.

Terms and Conditions

Reference: AB–910 (2/83); GN–870–6 (6/74)
Terms and conditions for lending operations in convertible and nonconvertible currencies.

Lending Rate

Reference: AB–300–3 (5/72); GN–870–6 (6/74)
Structure of the annual interest rate by country group. Guidelines for applying the policy.

Reference: GN–765–3 (2/72)
Utilization of loan resources for payment of interest during the disbursement period.

Credit Fee

Reference: GN-804 (5/71); AB–300–3 (5/72); AB–416 (5/75); GN–870–6 (6/74)
Percentage charged. Guidelines for applying the policy.

Reference: GP–19-4 (1/75); GN–1122–1 (9/76); GN–1123 (7/76)
Covenant in loan contracts.

Amortization and Grace Periods

Reference: AB–300–3 (5/72); GN–870–6 (6/74); GN–870–7 (1/75)
Policy application, determination of amortization and grace periods.

Inspection and Supervision

Reference: GN–357–1 (5/67); GN–1123 (7/76); GN–1122–1 (9/76)
Review of loan contracts; percentage charged on the total loan amount. Model loan contract.

Use of Currencies

Reference: GN–357–1 (5/67); GN–625 (4/70); AB–300–3 (5/72); DEA/76/37; GN–870–7 (1/75)
Use of currencies for payment. Guidelines for applying the policy.

Reference: GN–1123 (7/76); GN–1122–1 (9/76)
See "Inspection and Supervision".

Reference: GN–1134–12 (11/76); GN–1134–13 (11/76); FN–96–6 (3/77);
FN–96–8 (5/77); GP–94–1 (9/80)
Operational policy and procedures for the use of Latin American currencies. Utilization of the four currencies. Effects of exchange risk.

Reference: GP–82–8 (3/81); FN–139 (7/78); FP–9–2 (8/78); GP–94–2 (2/92)
Criteria for the use of convertible currency resources. Measures for the proper use of the Bank's resources in disbursement programs. Use of Latin American currencies.

* The operational policies of the Inter-American Development Bank are intended to provide operational guidance to staff in assisting the Bank's borrowing member countries. Over the course of the Bank's more than 40 years of operations, the approach to developing operational policies has taken various forms, ranging from the preparation of detailed guidelines to broad statements of principle and intent. Many policies have not been updated since they were originally issued, and a few reflect emphases and approaches of earlier years which have been superseded by specific mandates of the Bank's Governors, the most recent being the Eighth Replenishment mandates of 1994. In accordance with the Bank's information disclosure policy, the Bank is making all of its operational policies available to the public through the Public Information Center. Users please note that the Bank's operational policies are under a process of continuous review. This review process includes preparation of best practice papers summarizing experience at the Bank and other similar institutions, and sector strategy papers.