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"Even with concessional financing through 2018, debt would remain very high for decades and highly vulnerable to shocks.
Assuming official (concessional) financing through end 2018, the debt-to-GDP ratio is projected at about 150% in 2020, and close to 140% in 2022.
Rather than pursuing mandatory contributions or ad hoc annual allocations, the fund would follow the same triennial replenishment process as the World Bank's concessional financing arm, the International Development Association IDAA).
Strong commitment of development finance institutions to provide concessional financing of USD $450 M.
There is no historical precedent for a country achieving a fiscal adjustment of anything close to that magnitude without the benefit of exchange rate depreciation or highly concessional financing, neither of which Greece, Ireland or Portugal will benefit from.
We recognize the need for accelerated and additional concessional financial support to LICs to cushion the impact of the crisis on the poorest, welcome the increase in MDB lending during the crisis and support the MDBs having the resources needed to avoid a disruption of concessional financing to the most vulnerable countries.
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For infrastructure spending the bank should provide grants or concessional finance, rather than loans on market terms.
The World Bank's lending rules have hampered the delivery of concessional finance to middle-income countries like Jordan, Lebanon and Turkey.
The flip-side is they are then locked-out of concessional finance (loans extended at below-market rates).
We also believe we need to take another look at the rules on eligibility for concessional finance.
Could there be a better way of structuring concessional finance to better support the long-term aims of developing countries to curb greenhouse gas emissions and build resilience to a changing climate?
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