Finance multi-sector projects granted to intermediary financial institutions (IFIs) or similar agencies in the borrowing countries to enable them to on-lend to end- borrowers (sub-borrowers) for the financing of multi-sector projects, and when their size does not warrant direct Bank handling. GCR aim to: (i) increase access to credit for small and medium-sized enterprises, aligned with the Bank’s direct operations; (ii) encourage financial institutions to mobilize domestic and external savings, promoting efficient resource allocation and strengthening national capital markets; and (iii) enhance financial institutions' technical and managerial capacities for long-term viability.
Examples: Increasing productivity of women-owned businesses through investments in innovation and entrepreneurship.
Lending rate: SOFR base rate + IDB Ordinary Capital variable lending spread:
SOFR base rate is USD SOFR daily overnight compounded rate + IDB's funding margin. Funding margin for 1st quarter 2025 is 41 bps.
IDB’s Ordinary Capital lending spread - for 2025 is 80 bps.
Fees: Commitment fee 50 bps; applicable on undisbursed loan amount and starts to accrue 60 days after loan contract signature.
Interest and Currency conversion options are available.
For applicable loan charges and conversion option fees, please refer to www.iadb.org/rates
Flexible repayment options subject to a maximum maturity of 25 years, and maximum Weighted Average Life (WAL) of 15.25 years.
Standard Grace Period: 5.5 years.
Standard amortization schedule (semiannual, straight-line payments), bullet repayment structures, extended grace periods, uneven amortization schedules, and shorter repayment periods are available without additional cost.
Finance results of an existing or new government program
Loan Based on Results
(LBR)
Finance policy reforms or institutional changes
Policy-Based Loans
(PBL)
Interest Rate Risk Management
Interest Rate Conversion Option
(N/A)
Combining financial instruments ensures timely funds, spreads risk, and optimizes resources for disaster recovery and climate resilience. This approach supports immediate response and long-term investment, creating a robust and sustainable financial strategy.
The project aimed to enhance access to medium and long-term financing for MSMEs in Brazil. Executed through BNDES, the initiative channeled $750 million to support productive investments by MSMEs, fostering growth, job creation, and productivity. The funds were distributed via innovative digital platforms and financial agents, reaching 20,971 beneficiaries.
The program strengthened financial inclusion for MSMEs, with a 99.5% increase in digital channel use for credit access. It also improved credit distribution in vulnerable regions, achieving 27.9% of total credit. The initiative contributed to a 4% employment growth and 3-5% revenue increase for supported MSMEs. Additionally, 15% of beneficiaries were women-led enterprises, and $242.3 million was allocated to socially vulnerable areas. The digital transformation of BNDES further streamlined financial processes, promoting long-term financial sustainability.
This project supported the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Uruguay during the COVID-19 crisis. With $80 million in funding, the program aimed to improve short-term financial stability and promote economic recovery for MSMEs through enhanced access to credit guarantees. It was executed by CONAFIN AFISA and provided guarantees for both short-term liquidity and medium-term recovery financing, achieving a remarkable allocation of all funds within three months.
The program bolstered MSME resilience, maintaining employment levels and supporting financial stability during the pandemic. It allocated $80 million to credit guarantees, leveraged to secure $370.5 million in loans. Notably, the program reduced the relative arrears rate to 0.82% within 18 months, outperforming expectations. It facilitated better loan conditions, including longer terms and lower interest rates, resulting in significant financial relief. Additionally, it demonstrated an innovative approach to leveraging public-private mechanisms to protect vulnerable sectors during crises.