REVIEW OF IMPLEMENTATION AND UTILIZATION OF SHORTER-MATURITY LOANS - Development Finance, Corporate IDA & IBRD (DFCII) - November 22, 2023

Jul 19, 2026

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The report reviews how Shorter-Maturity Loans (SMLs) were implemented and utilized, and it outlines future directions for SMLs in the context of the World Bank Evolution Roadmap. Introduced in IDA20 to support countries facing heightened financing needs from COVID-19 and overlapping crises, SMLs expand IDA capacity through temporary capital before full leverage is reached. It summarizes features, eligibility criteria, allocation structures, maturity and concessionality terms, and tracks commitments through FY24 Q1 using PBA-SMLs and SUW-SMLs.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages21

Reading Time53 min

AccessFree to download

Executive Summary

Introduction

Strategic Context for the Introduction of Shorter-Maturity Loans

Summary of Features, Financing Envelope and Eligibility Criteria

Implementation and Progress Update

Lessons Learned from Implementation

Looking Forward

Issues for Discussion

Annexes

Public Disclosure Authorized Public Disclosure Authorized REVIEW OF IMPLEMENTATION AND UTILIZATION OF SHORTER-MATURITY LOANS Development Finance, Corporate IDA & IBRD (DFCII) November 22, 2023 ACRONYMS AND ABBREVIATIONS Fiscal Year (FY) = July 1 to June 30 All dollar amounts are US dollars. AFE BSOs Cat-DDOs CMUs DPF DSA DSC EFI FCS FCV GCRF IDA IDA19 IDA20 IFIs IPF WBG Africa Eastern and Southern Balance Sheet Optimization Catastrophe Deferred Drawdown Option Country Management Units Development Policy Financing Debt Sustainability Analysis Deployable Strategic Capital Equitable Growth, Finance and Institutions Fragile and Conflict-Affected Situations Fragility, Conflict and Violence Global Crises Response Framework International Development Association 19th Replenishment of IDA 20th Replenishment of IDA International Financial Institutions Investment Project Financing World Bank Group LIC-DSF MTR NCB PBA PBA-SMLs PforR PPA SAR SDFP SMLs SUW SUW-SMLs Low-Income Countries Debt Sustainability Framework Mid-Term review Non-Concessional Borrowing Performance Based Allocations SMLs offered through PerformanceBased Allocation Program-for-Results Performance and Policy Actions South Asia Region Sustainable Development Finance Policy Shorter-Maturity Loans Scale Up Window SMLs offered through Scale-up Window TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................................................................... i I. INTRODUCTION................................................................................................................ 1 II. STRATEGIC CONTEXT FOR THE INTRODUCTION OF SHORTER-MATURITY LOANS.................................................................................................................................. 1 III. SUMMARY OF FEATURES, FINANCING ENVELOPE AND ELIGIBILITY CRITERIA............................................................................................................................ 2 IV. IMPLEMENTATION AND PROGRESS UPDATE........................................................ 4 V. LESSONS LEARNED FROM IMPLEMENTATION..................................................... 8 VI. LOOKING FORWARD.................................................................................................... 10 VII. ISSUES FOR DISCUSSION............................................................................................. 11 LIST OF ANNEXES Annex 1. Countries Eligible for Scale Up Window Shorter-Maturity Loans in FY23 ................. 12 Annex 2. Countries Eligible for Scale Up Window Shorter-Maturity Loans in FY24 ................. 14 Annex 3. List of Approved Operations Using Shorter-Maturity Loans ....................................... 15 TABLE OF FIGURES AND BOXES FIGURES Figure 4. 1. PBA SML FY23 Allocation vs Commitments by Region .......................................... 4 Figure 4. 2. SUW-SML FY23 Allocations vs Commitments by Region ....................................... 5 Figure 4. 3. SML Commitments by Lending Eligibility Group FY23 (FY23-FY24 Q1) .............. 5 Figure 4. 4. SML Commitments by Region (FY23-FY24 Q1) ...................................................... 6 Figure 4. 5. SML Commitments by Practice Groups (FY23-FY24 Q1) ........................................ 6 Figure 4. 6. SML Commitments by Lending Instrument (FY23-FY24 Q1) .................................. 7 BOXES Box 4. 1. A tool for maximizing concessionality: the Case of Tanzania........................................ 8 Box 5. 1. A Client’s perspective on SMLs: Madagascar ................................................................ 9 EXECUTIVE SUMMARY i. This paper reviews the implementation and utilization of Shorter-Maturity Loans (SMLs) and provides an opportunity to reflect on the future direction of SMLs, especially

FAQs

Why were Shorter-Maturity Loans introduced in IDA20?

They were introduced to support IDA countries facing heightened financing needs created by the COVID-19 pandemic and exacerbated by multiple overlapping crises.

How are SMLs allocated between PBA-SMLs and SUW-SMLs?

Eligible countries receive a share of total Country Allocations through PBA-SMLs, while SUW-SMLs are determined at the regional level.

What are the key financial and concessional terms of SMLs?

SMLs have a 12-year final maturity, a 6-year grace period, zero interest or service charges, and 36% concessionality, and they can finance any type of lending instrument.

Jul 19, 2026

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