[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111581-en":3,"doc-seo-111581-105":30,"detail-sidebar-cat-0-en-105":91},{"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":13,"seo_description":14,"update_tm":28,"read_time":29},111581,687197207639,"Asher","https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd",8,"Research & Report","IBRD Lending Rates and Spreads Applicable on or after July 1, 2024 Rate Update Summary","Quarterly memorandum outlining updated IBRD lending rates and spread levels for the Flexible Loan (IFL) and related pricing mechanisms. The update applies to rate setting between July 1, 2024 and September 30, 2024, using alternative reference rates by currency. It specifies average funding spread outcomes for EUR, JPY, and USD/other currencies and notes methodology changes for JPY from April 1, 2024. It also summarizes the background of IFL variable spread pricing, maturity premium classification, and the removal of the Single Borrower Limit surcharge.","Public Disclosure Authorized Public Disclosure Authorized  \nFrom: The President July 24, 2024  \nMemorandum  \nSubject: IBRD Lending Rates and Spreads Applicable on or after July 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 July 1, 2024 and September 30, 2024 have been determined based on the new applicable alternative reference rates at the following levels2 :  \n• EUR denominated loans: positive 1 bps;  \n• JPY denominated loans: negative 20 bps;  \n• loans denominated in USD and other currencies: positive 44 bps.  \nManagement introduced a separate calculation of the Average Funding Spread for JPY denominated loans as of April 1, 2024 in line with existing practice of calculating the Average Funding Spread for the EUR denominated loans (refer to “IFL Variable Spread” in Section II below) .  \nI. Background  \nIBRD offers financing through one loan product, the IFL, to eligible members.3,4 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  \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.  \nIBRD currently offers IFLs with the following Reference Rates6,7,8 :  \n• USD: Secured Overnight Financing Rate (SOFR);  \n• GBP: Sterling Overnight Index Average (SONIA);  \n• JPY: Tokyo Overnight Average Rate (TONA);  \n• EUR: Euro Interbank Offered Rate (EURIBOR) .  \nThis memorandum summarizes the lending rates and spreads currently applicable to IBRD loans with rate setting between July 1, 2024 and September 30, 2024.  \nII. IBRD Flexible Loan Rates and Spreads  \nMaturity Premium: IBRD differentiates its loan pricing based on national income and other factors of each Borrower (see Annex 2) through the maturity premium.9 Borrowers are classified into four pricing groups, whose applicable maturity premium is differentiated by exemptions, discounts, or surcharges specific to each pricing group. The classification of the member countries by pricing group is updated annually and becomes effective on July 1 of each year (see Annex 2 for FY24 Country Groups for IBRD Pricing) .  \nThe maturity premium schedule offers Borrowers the flexibility to choose a desired maturity at the differentiated pricing level. Table 1 provides the details of the pricing group-specific maturity premium schedule. The details of rate structure and current pricing of the IFL Variable Spread is provided below in this section.  \nSingle Borrower Limit: Until April 9, 2024, IBRD’s Single Borrower Limit (SBL) framework applied the SBL surcharge on the basis of two surcharge thresholds, for countries above and below Graduation Discussion Income (GDI), each defined as $2.5 bil","cbCaie6AqJsg1Xai","https://ap.wps.com/l/cbCaie6AqJsg1Xai","pdf",242897,2,1,9,"English","en",105,"# Rate Update Summary\n# Background on IBRD Flexible Loan (IFL)\n# IBRD Flexible Loan Rates and Spreads\n## Maturity Premium and Pricing Groups\n## Single Borrower Limit (SBL)\n## IFL Variable Spread Components","[{\"question\":\"What period does this rate update cover?\",\"answer\":\"The memorandum covers IBRD lending rates and spreads applicable to rate setting between July 1, 2024 and September 30, 2024.\"},{\"question\":\"How are average funding spreads determined for different currencies?\",\"answer\":\"Average funding spreads for the IFL effective from July 1, 2024 to September 30, 2024 are determined by currency, with EUR set at positive 1 bps, JPY at negative 20 bps, and USD and other currencies at positive 44 bps.\"},{\"question\":\"Why is IFL currently offered as a variable spread rather than a fixed spread?\",\"answer\":\"The offering of IFL fixed spread and spread-fixing conversion features was suspended effective April 1, 2021, so IFL is currently available only as IFL Variable Spread with variable spreads over the Reference Rate.\"}]",1784490773,23,{"code":4,"msg":31,"data":32},"ok",{"site_id":25,"language":24,"slug":33,"title":13,"keywords":34,"description":14,"schema_data":35,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":28},"ibrd-lending-rates-and-spreads-applicable-on-or-after-july-1-2024-rate-update-summary","",{"@graph":36,"@context":85},[37,53,68],{"@type":38,"itemListElement":39},"BreadcrumbList",[40,44,47,50],{"item":41,"name":42,"@type":43,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":45,"name":46,"@type":43,"position":20},"https://docshare.wps.com/document/","Document",{"item":48,"name":12,"@type":43,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":43,"position":52},"https://docshare.wps.com/document/ibrd-lending-rates-and-spreads-applicable-on-or-after-july-1-2024-rate-update-summary/111581/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":24,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":41,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-22","2026-07-19",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What period does this rate update cover?","Question",{"text":75,"@type":76},"The memorandum covers IBRD lending rates and spreads applicable to rate setting between July 1, 2024 and September 30, 2024.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"How are average funding spreads determined for different currencies?",{"text":80,"@type":76},"Average funding spreads for the IFL effective from July 1, 2024 to September 30, 2024 are determined by currency, with EUR set at positive 1 bps, JPY at negative 20 bps, and USD and other currencies at positive 44 bps.",{"name":82,"@type":73,"acceptedAnswer":83},"Why is IFL currently offered as a variable spread rather than a fixed spread?",{"text":84,"@type":76},"The offering of IFL fixed spread and spread-fixing conversion features was suspended effective April 1, 2021, so IFL is currently available only as IFL Variable Spread with variable spreads over the Reference 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