Special terms for LDCs in concessional loans

Some countries and organizations have special terms for LDCs in concessional loans:

  • Republic of Korea: LDCs have the most favourable conditions, including lower interest rates and longer repayment periods, in the loans provided by the Economic Development Cooperation Fund of Korea, administered by the Export-Import Bank of Korea and the Ministry of Strategy and Finance.
  • Japan: LDCs have the most favourable terms within the Japanese ODA Loans.
  • Asian Development Bank: 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). See Asian Development Bank (2018), “Classification and Graduation of Developing Member Countries”, Operations Manual Section A1, Policies and Procedures, updated on 5 January 2018.