[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111775-en":3,"doc-seo-111775-105":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},111775,2336464648746,"Skyler","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","IBRD Lending Rates and Spreads Applicable on or After October 1, 2023 Rate Update Summary","Quarterly update memorandum detailing the IBRD’s lending rates and spread adjustments effective from October 1, 2023, based on standard loan pricing under the Bank Policy and Directive on Financial Terms and Conditions of Bank Financing. Summarizes average funding spreads for the IBRD Flexible Loan (IFL) for the period through December 31, 2023, and explains how LIBOR transition measures changed reference-rate and spread structures. Provides context on reference rate replacements, transition period mechanics, and the resulting mix of USD instruments referencing LIBOR and SOFR.","Public Disclosure Authorized Public Disclosure Authorized  \nFrom: The President October 25, 2023  \nMemorandum  \nSubject: IBRD Lending Rates and Spreads Applicable on or after October 1, 2023 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 October 1, 2023 and December 31, 2023 have been determined based on the new applicable alternative reference rates at the following levels2 :  \n• EUR denominated loans: negative 7 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, 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 from January 1, 2022, IBRD offers IFLs with the following Reference Rates:  \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 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.  \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 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","cbCaijg0jDtyjmP6","https://ap.wps.com/l/cbCaijg0jDtyjmP6","pdf",639210,1,10,"English","en",105,"# Rate Update Summary\n## Background and LIBOR Transition Context\n## IBRD Flexible Loan Rates and Spreads\n## Key Reference Rates and Spread Structure","[{\"question\":\"What is the purpose of this memorandum?\",\"answer\":\"It provides the quarterly update of IBRD’s lending rates and spreads for loans with rate setting between October 1, 2023 and December 31, 2023, following the Bank’s standard loan pricing framework.\"},{\"question\":\"How are the average funding spreads for IBRD’s IFL determined for the cited period?\",\"answer\":\"They are determined based on new applicable alternative reference rates, with EUR-denominated loans showing negative bps and USD and other currencies showing positive bps for the period October 1 to December 31, 2023.\"},{\"question\":\"What changed in IBRD lending during the LIBOR transition?\",\"answer\":\"The offering of IFL Fixed Spread and related spread-fixing conversion features was suspended from April 1, 2021, and reference rates were switched for new and existing loan offerings starting January 1, 2022, with completion dates varying by currency 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is the purpose of this memorandum?","Question",{"text":74,"@type":75},"It provides the quarterly update of IBRD’s lending rates and spreads for loans with rate setting between October 1, 2023 and December 31, 2023, following the Bank’s standard loan pricing framework.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"How are the average funding spreads for IBRD’s IFL determined for the cited period?",{"text":79,"@type":75},"They are determined based on new applicable alternative reference rates, with EUR-denominated loans showing negative bps and USD and other currencies showing positive bps for the period October 1 to December 31, 2023.",{"name":81,"@type":72,"acceptedAnswer":82},"What changed in IBRD lending during the LIBOR transition?",{"text":83,"@type":75},"The offering of IFL Fixed Spread and related spread-fixing conversion features was suspended from April 1, 2021, and reference rates were switched for new and existing loan offerings starting January 1, 2022, with 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