[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110598-en":3,"doc-seo-110598-105":29,"detail-sidebar-cat-0-en-105":90},{"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":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},110598,687197207639,"Asher","https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd",8,"Research & Report","IBRD Lending Rates and Spreads Applicable on or after October 1, 2022 - Memo - Rate Update Summary","This memorandum provides a quarterly update to IBRD’s lending rates and spreads under the Bank Policy and Directive governing Financial Terms and Conditions of Bank Financing. It specifies the average funding spreads for the IBRD Flexible Loan effective from October 1, 2022 to December 31, 2022, including EUR-denominated loans and USD/other currency loans. It also explains the background of the LIBOR transition, the move to alternative reference rates (SOFR, SONIA, TONA, and EURIBOR), and how variable and fixed spread loans are reset.","Public Disclosure Authorized Public Disclosure Authorized  \nFrom: The President October 31, 2022  \nMemorandum  \nSubject: IBRD Lending Rates and Spreads Applicable on or after October 1, 2022  \nRate 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 October 1, 2022 and December 31, 2022have been determined based on the new applicable alternative reference rates at the following levels2 :  \n• EUR denominated loans: negative 2 bps;  \n• loans denominated in USD and other currencies: positive 6 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 In preparation for phase-out of LIBOR globally beginning January 1, 2022, 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, in accordance with the decision of the Executive Directors on modifications to IBRD and IDA new loan offerings and on the timeline for the existing loans switch-over to new Reference Rates6,7,8, effective  \n1 Policy “Financial Terms and Conditions of Bank Financing,” Catalogue No. OPS5 .09-POL. 175, July 1, 2022, and Directive “Financial Terms and Conditions of Bank Financing,” Catalogue No. OPS5.09-DIR.137, July 1, 2022.  \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 IDA New 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.  \nfrom January 1, 2022, IBRD has switched the Reference Rates for new IFL approvals from the 6-month LIBOR to the following alternative reference rates:  \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) .  \nFor the existing Variable Spread Loans (VSL), replacement of LIBOR rates commenced 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 Lo","cbCaionl9TxthMiE","https://ap.wps.com/l/cbCaionl9TxthMiE","pdf",726095,1,11,"English","en",105,"# Rate Update Summary\n# Background\n# IBRD Flexible Loan Rates and Spreads","[{\"question\":\"What does the memorandum update for IBRD loans?\",\"answer\":\"It provides a quarterly update of IBRD’s lending rates and spreads based on the standard loan pricing framework.\"},{\"question\":\"Which average funding spreads apply to IBRD Flexible Loans from October 1 to December 31, 2022?\",\"answer\":\"EUR-denominated loans have an average funding spread of negative 2 bps, while USD and other currency loans have a positive 6 bps.\"},{\"question\":\"How does the document describe the transition away from LIBOR?\",\"answer\":\"It explains that IBRD switched reference rates for new approvals starting January 1, 2022 to SOFR, SONIA, TONA, and EURIBOR, and details how existing variable and fixed spread loans reset on their respective first reset dates, completing replacement for key groups by June 30, 2022 (with later steps for USD fixed spread 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does the memorandum update for IBRD loans?","Question",{"text":74,"@type":75},"It provides a quarterly update of IBRD’s lending rates and spreads based on the standard loan pricing framework.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Which average funding spreads apply to IBRD Flexible Loans from October 1 to December 31, 2022?",{"text":79,"@type":75},"EUR-denominated loans have an average funding spread of negative 2 bps, while USD and other currency loans have a positive 6 bps.",{"name":81,"@type":72,"acceptedAnswer":82},"How does the document describe the transition away from LIBOR?",{"text":83,"@type":75},"It explains that IBRD switched reference rates for new approvals starting January 1, 2022 to SOFR, SONIA, TONA, and EURIBOR, and details how existing variable and fixed spread loans reset on their respective first reset dates, completing replacement for key groups by June 30, 2022 (with later steps for USD fixed spread 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