[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111095-en":3,"doc-seo-111095-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},111095,1099513958762,"Logic","https://ap-avatar.wpscdn.com/avatar/1000023916a998db790?x-image-process=image/resize,m_fixed,w_180,h_180&k=1784791008015729253",8,"Research & Report","IBRD Lending Rates and Spreads Applicable on or after January 1, 2024 Rate Update Summary","Quarterly update memo outlining the IBRD lending rates and spreads applicable to IBRD loans with rate setting between January 1, 2024 and March 31, 2024. Summarizes average funding spreads for the IBRD Flexible Loan (IFL) based on new alternative reference rates, including negative EUR spreads and positive spreads for USD and other currencies. Provides background on IBRD loan instruments, LIBOR transition measures, reference-rate replacement completion, and the pricing framework covering maturity premium schedules and the Single Borrower Limit surcharge approach.","Public Disclosure Authorized Public Disclosure Authorized  \nFrom: The President January 29, 2024  \nMemorandum  \nSubject: IBRD Lending Rates and Spreads Applicable on or after January 1, 2024 Rate Update Summary  \nThis memorandum provides the quarterly update of IBRD’s lending rates and spreads pursuant to the standard loan pricing as defined in the Bank Policy and Directive “Financial Terms and Conditions of Bank Financing”. 1 The Average Funding Spreads applicable to the IBRD Flexible Loan (IFL) effective between January 1, 2024 and March 31, 2024 have been determined based on the new applicable alternative reference rates at the following levels2 :  \n• EUR denominated loans: negative 1 bps;  \n• loans denominated in USD and other currencies: positive 44 bps.  \nI. Background  \nIBRD promotes poverty reduction and supports sustainable economic and institutional development of member countries by providing financing and related operational assistance through its three main financing instruments – Investment Project Financing (IPF), Development Policy Financing (DPF), and Program-forResults (PfR) .  \nIBRD offers financing of these instruments through one loan product, the IFL, to eligible members.3, 4 As part of phase-out of LIBOR the Bank has implemented several measures in its lending policies. First, the offering of the IFL Fixed Spread and related spread-fixing conversion features was suspended effective from April 1, 2021, so IFL is currently only available in the form of the IFL Variable Spread, featuring variable spreads over the Reference Rate.5  \nFurther, IBRD currently offers IFLs with the following Reference Rates6, 7, 8 :  \n• USD: Secured Overnight Financing Rate (SOFR);  \n• GBP: Sterling Overnight Index Average (SONIA);  \n1 Policy “Financial Terms and Conditions of Bank Financing,” Catalogue No. OPS5 .09-POL.178, July 1, 2023, and Directive “Financial Terms and Conditions of Bank Financing,” Catalogue No. OPS5.09-DIR.140, July 1, 2023.  \n2 Please see Table 1 for detailed information.  \n3 Aside from IFLs, there are a few historic currency pool-based products, which have been discontinued but require rate resetting in IBRD’s portfolio. The only outstanding currency pool loans (CPL) with variable rate terms are the loans to Zimbabwe, which are currently in non-accrual status. There are also IFL and CPL loans whose rates are fixed for the life of the loan through conversion and hedging.  \n4 In addition, IBRD offers other financial products, including conversions and risk management/hedging products, guarantees, and disaster risk financing.  \n5 “Proposal to Suspend the Offering of Fixed Spread Loans and Spread-Fixing Conversions in the Context of LIBOR Transition”, R2020-0243/2, December 21, 2020.  \n6 “Proposed Modifications to IBRD and IDANew Loan Offers and Proposed Timeline for the Existing Loans Switchover to New Market Reference Rates in the Context of LIBOR Transition,” R2021-0129, June 23, 2021.  \n7 “Proposed Modifications to the IBRD and IDA General Conditions to add flexibility in reference rate replacement provisions,” R2018-0235, October 18, 2018.  \n8 “Proposal to Manage IBOR Transition Risks in IBRD Loan and IDA Non-concessional Financing Agreements Governed by General Conditions Prior to December 2018,” R2020-0029/1, March 3, 2020.  \n• JPY: Tokyo Overnight Average Rate (TONA);  \n• EUR: Euro Interbank Offered Rate (EURIBOR) .  \nFor the legacy Variable Spread Loans (VSL) referenced to LIBOR, replacement of LIBOR rates commenced on January 1, 2022 and the replacement was applied for each loan on the first loan rate reset date falling on or after January 1, 2022. Similarly, for the existing Fixed Spread Loans (FSL) denominated in GBP, JPY and EUR, replacement of LIBOR began January 1, 2022, applying the replacement for each loan on the first loan rate reset date falling on or after that date. The replacement of LIBOR for all these groups of loans was completed on June 30, 2022. For USD denominated FSLs, the replac","cbCaigwErLFycRZ1","https://ap.wps.com/l/cbCaigwErLFycRZ1","pdf",629314,3,1,10,"English","en",105,"# Rate Update Summary\n## Background and LIBOR Transition Context\n## IBRD Flexible Loan Rates and Spreads\n### Maturity Premium Framework\n### Single Borrower Limit (SBL) Surcharge","[{\"question\":\"What period does the memorandum cover for applicable IBRD loan rate setting?\",\"answer\":\"It covers lending rates and spreads for IBRD loans with rate setting between January 1, 2024 and March 31, 2024.\"},{\"question\":\"How were IFL average funding spreads determined for the January 1, 2024 to March 31, 2024 period?\",\"answer\":\"They were determined using the new applicable alternative reference rates and vary by currency, with EUR denominated loans at negative 1 bps and USD/other currency loans at positive 44 bps.\"},{\"question\":\"What is the current form of the IBRD Flexible Loan (IFL) and why?\",\"answer\":\"The IFL is currently offered only as a variable spread over the reference rate because offering fixed-spread IFL and related spread-fixing conversions was suspended effective April 1, 2021 as part of LIBOR transition.\"}]","IBRD Lending Rates and Spreads Applicable on or after January 1, 2024 Rate Update Summary | 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period does the memorandum cover for applicable IBRD loan rate setting?","Question",{"text":76,"@type":77},"It covers lending rates and spreads for IBRD loans with rate setting between January 1, 2024 and March 31, 2024.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"How were IFL average funding spreads determined for the January 1, 2024 to March 31, 2024 period?",{"text":81,"@type":77},"They were determined using the new applicable alternative reference rates and vary by currency, with EUR denominated loans at negative 1 bps and USD/other currency loans at positive 44 bps.",{"name":83,"@type":74,"acceptedAnswer":84},"What is the current form of the IBRD Flexible Loan (IFL) and why?",{"text":85,"@type":77},"The IFL is currently offered only as a variable spread over the reference rate because offering fixed-spread IFL and related spread-fixing conversions was suspended effective April 1, 2021 as part of LIBOR 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