Asian Development Bank – special terms on loans for LDCs

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.

 

Creditworthiness

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, 2019

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