The World Bank (IBRD and IDA)
World Bank extends assistance through its concessional lending window -International Development Agency (IDA) and semi-concessional lending through International Bank for Reconstruction and Development (IBRD). The International Bank for Reconstruction and Development (IBRD) was established in 1945 and began its programme of economic assistance in June 1946.Its member countries subscribe to its capital and its lending operations are financed primarily from its borrowings in the International capital markets, from retained earnings and the flow of repayments of its loans. IBRD provides loans to member governments at relatively cheaper rates than that available from international capital markets by leveraging its AAA credit rating. India has been a major borrower of such intermediated loans from the IBRD. IBRD assistance to India commenced in 1949, currently the IBRD offers single currency loans on variable spread (VSLs) and fixed spread (FSLs) basis. India presently borrows under single currency loans on variable spread basis only.
The International Development Association (IDA) was established in 1960, as an affiliate of the World Bank to make concessional long term loans.