Asian Development Bank – special terms on loans for LDCs

The Asian Development Bank places LDCs, depending on the assessment of their creditworthiness, in a different category than countries of similar income.  The policy is summarized in the table below:



Per Capita GNI Cutoff
Below the per capita GNI cutoff Above the per capita GNI cutoff
LDC Other
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, 2018

LDCs that are no longer low-income countries and that “lack” creditworthiness are provided concessional assistance only (as opposed to  blended finance for countries of similar income that are not LDCs); countries that are no longer low-income countries but that have “adequate” creditworthiness have access to blended finance (as opposed to ordinary capital resources only countries with a similar level of income that are not LDCs). For countries considered of “limited” creditworthiness, whether or not the country is an LDC does not change the terms of loans.

Source and further information: Asian Development Bank (2018), “Classification and Graduation of Developing Member Countries”, Operations Manual Section A1, Policies and Procedures, issued on 23 April 2019.