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Grenada depends on oil from Trinidad -- not an OPEC member -- and in the past Trinidad has offered concessional terms in times of crisis.
It recommended that credit be offered on "highly concessional terms", that would give the stricken country low interest rates and long repayment periods.
Worse still, many developing countries began accumulating debts to the Bank which, whether originally granted on concessional terms or not, still grew a lot faster than their economies, some of which were actually shrinking.
In contrast to 2009, nearly all Greek government debt that is scheduled to be repaid in the near future has an ESM back-up facility to refinance on highly concessional terms — including very low interest rates, generous grace periods and contractually agreed-upon maturities of up to almost 50 years.
But it was far closer to the Soviet Union than to the United States throughout the Cold War, buying weapons on concessional terms, doing barter trade with the Eastern Bloc and receiving financial and technical aid for industrial and infrastructure projects.
"However, if the loan is on concessional terms it would enable the country to weather the crisis.
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According to UNCTAD: Official development assistance (ODA) refers to grants or loans to developing countries that: (a) are undertaken by the official sector; (b) have the promotion of economic development and welfare as the main objective; (c) are at concessional financial terms, having a grant element of at least 25%% (UNCTAD 2010 49).
Resources from the sale of IMF gold, consistent with the new income model, and funds from internal and other sources will double the Fund's medium-term concessional lending capacity.
Resources from the agreed sale of IMF gold, consistent with the IMF's new income model, and funds from internal and other sources will more than double the Fund's medium-term concessional lending capacity.
Wen said China wants to help Africa build its financing capacity and would provide the concessional loans with generous terms.
Though the loans are likely to be "concessional," with interest rates and terms far more generous than what the market would ask for, activists say the three countries — among the poorest in Africa — should not be saddled with any more debt.
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