In addition to harder terms for blend, gap and graduating countries, the non-gap ADF-only countries are grouped into two sub-groups (“regular” and “advance” ADF-only countries) based on their GNI per capita.
Countries with a GNI
Countries with a GNI per capita (Atlas method) above the average of all ADF-only non-gap countries are included in the “advance” group, while all countries with a GNI per capita below the average are in the “regular” group. The grouping is established once in the first year of the cycle.
These lending terms will only apply to the loan portion of countries’ allocations. As an exception, “regular” ADF lending terms will apply to all countries receiving loans while eligible to TSF Pillar I, regardless of their grouping (regular or advance). Regular lending terms will apply on the loan portion received through PBA and TSF Pillar I allocation. It is worth noting that, since ADF-13, the loans/grants mix of the PBA of the first year of the cycle applies to the TSF Pillar I allocation, rather than the latter being provided fully in the form of grants as under ADF-11 and ADF-12.
Countries’ classification, grouping, lending eligibility and financing terms are reviewed annually at the beginning of the PBA process.
Since ADF-15, the Fund applies the WB/IMF DSA in a dynamic manner: country allocations are adjusted to reflect any DSA deterioration during the year. The flexibility provided by the dynamic DSA covers all ADF-only countries that are in the regular and advance groups including ADF-only Gap countries.
Projected Classification and Lending Terms of Recipient Countries under ADF-15
|Country||Classification & Lending Terms||TSF |
|DSA (June 2020)|
|Central African Rep.||Regular||AO||Regular||AO||Regular||AO||Regular||AO||■||Red|
|Congo Democratic Rep.||Regular||AO||Regular||AO||Regular||AO||Regular||AO||■||Yellow|
|São Tomé et Príncipe||Gap||G||Gap||G||Gap||G||Gap||G||Black|
±Classifications and lending terms of countries are based on current projections and could be revised annually in the course of the ADF-15 cycle in the begenning of each PBA exercise.
*Côte d’Ivoire graduated from ADF-only Gap to Blend (Category B) in November 2019. The most recent IMF/WB DSAs published in the IMF’s website are used (April 2020). Eritrea Debt Sustainability Analysis has been discussed by the IMF Executive Board on the 22nd of July 2019 but report is not yet published. Following the recommendation of the relevant Regional Directorate, Eritrea was assessed in debt distress situation FY 2020.
|ǂTSF Pillar I eligibility is based on preliminary review. The Board of Directors approvaed the “Country Eligibility Assessments for Resources of the TSF Under ADF-15” on June 24, 2020.|
|Country Classification||Differentiated and Hardened Financing Terms|
|■||Eligible for Pillar I of the TSF||Maturity (Yrs)||Grace (Yrs)||Interest Rate (%)|
|AO||ADF-only (category A)||Advance||40||5||–|
|G||Gap (category A)||Regular||40||10||–|
|B||Blend (category B)||Blend||30||5||1|