The Asian Development Bank considers whether or not a country is an LDC when classifying countries for the purposes of concessional financing. Above a certain income threshold, and depending on creditworthiness and other factors, a country may be reclassified (from “Group A” to “Group B” or from “Group B” to “Group C” – see here for more information). Being an LDC may be grounds for a country to remain in their original category. Graduation could mean moving to Group B or Group C, depending on the country’s situation. The policy is summarized in the table below. Reclassification across groups is not, however, a mechanical process, and is addressed on a case-by-case basis based on multiple criteria.
|Per Capita GNI Cutoff|
|Below the per capita GNI cutoff||Above the per capita GNI cutoff|
|Lack of||Concessional assistance only (Group A)||Concessional assistance only (Group A)||OCR blend (Group B)|
|Limited||OCR blend (Group B)||OCR blend (Group B)||OCR blend (Group B)|
|Adequate||OCR blend (Group B)||OCR blend (Group B)||Regular OCR-only (Group C)|
Source: adapted from Asian Development Bank, 2019
Source and further information:
- On the ADB website: Financial Products: Public Sector Financing;
- Asian Development Bank (2019), “Classification and Graduation of Developing Member Countries”, Operations Manual Section A1, Policies and Procedures, issued on 23 April 2019.