Sustainable Development Finance Policy of the International Development Association - FY26 Implementation Update - Official Use Only

Jul 19, 2026

Sustainable Development Finance Policy of the International Development Association (IDA) provides an FY26 implementation update covering development finance, IDA mobilization, and IBRD corporate finance coordination. The update details how the Debt Sustainability Enhancement Program evolves, including FY25 implementation results and the FY26 formulation of performance policy actions. It also reviews enhancements to the Sustainable Development Finance Policy, describes the program of creditor outreach, and assesses impact on select outcome indicators, supported by annex data and figures.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages49

Reading Time2 h 3 min

Executive Summary

Introduction

Debt Sustainability Enhancement Program

FY25 Implementation and FY26 Formulation of PPAs

Review of Enhancements to the SDFP

Program of Creditor Outreach

Impact on Select Outcome Indicators

Conclusion

List of Annexes

Annex 1. Recent Debt Developments in IDA Countries

Annex 2. Implementation of DSEP

Annex 3. Impact on Select Outcome Indicators

Public Disclosure Authorized Public Disclosure Authorized SUSTAINABLE DEVELOPMENT FINANCE POLICY OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION: FY26 IMPLEMENTATION UPDATE Development Finance, IDA Mobilization and IBRD Corporate Finance (DFFPO) April 1, 2026 Official Use Only ACRONYMS AND ABBREVIATIONS Fiscal Year (FY) = July 1 to June 30 All dollar amounts are US dollars AfDB AIIB AsDB DPF DMF DRM DSA DSEP FCS GDP GSDR IAN IDA IDA21 IFAD IFP IMF iPPAs LIC LIC-DSF MAC-SRDSF African Development Bank Asian Infrastructure Investment Bank Asian Development Bank Development Policy Financing Debt Management Facility Domestic Revenue Mobilization Debt Sustainability Analysis Debt Sustainability Enhancement Program Fragile and Conflict-Affected Situations Gross Domestic Product Global Sovereign Debt Roundtable Implementation Assessment Note International Development Association 21st Replenishment of IDA International Fund for Agricultural Development Integrated Financing Package International Monetary Fund Institutional Performance and Policy Actions Low-Income Country Debt Sustainability Framework for Low-Income Countries Sovereign Risk and Debt Sustainability Framework for Market Access Countries MDB MCDF NCB OECD PBA PCO PPA PPG PER PER PEFA RECA SDFP SOE SSE VAT WBG Multilateral Development Bank Multilateral Cooperation Center for Development Finance Non-Concessional Borrowing Organisation for Economic Cooperation and Development Performance-Based Allocations Program of Creditor Outreach Performance and Policy Action Public and Publicly Guaranteed Public Expenditure Review Public Finance Review Public Expenditure and Financial Accountability Remaining Engaged in Conflict Allocation Sustainable Development Finance Policy State-Owned Enterprises Small States Exception Value-Added Tax World Bank Group Official Use Only TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................................................................... i I. INTRODUCTION................................................................................................................... 1 II. DEBT SUSTAINABILITY ENHANCEMENT PROGRAM ............................................. 2 A. FY25 Implementation and FY26 Formulation of PPAs ..................................................... 2 B. Review of Enhancements to the SDFP ............................................................................... 9 III.PROGRAM OF CREDITOR OUTREACH ...................................................................... 14 IV. IMPACT ON SELECT OUTCOME INDICATORS........................................................ 16 V. CONCLUSION ..................................................................................................................... 18 LIST OF ANNEXES Annex 1. Recent Debt Developments in IDA Countries .............................................................. 19 Annex 2. Implementation of DSEP .............................................................................................. 24 Annex 3. Impact on Select Outcome Indicators ........................................................................... 32 Official Use Only TABLE OF FIGURES, BOXES, AND TABLES FIGURES Figure 2. 1. Share of countries with at least one PPA in DSEP area, percentage........................... 3 Figure 2. 2. Share of PPAs by DSEP area, percentage ................................................................... 3 Figure 2. 3. Evolution of PPAs approved from FY21 – FY26 ....................................................... 3 Figure B2.1 . 1. Trends in iPPAs, percentage .................................................................................. 6 Figure B2.1. 2. iPPAs by DSEP area, percentage..........................................................................

FAQs

What is the purpose of the FY26 implementation update in IDA’s Sustainable Development Finance Policy?

It summarizes how the policy is implemented in FY26, including links to development finance activities and the coordination of debt sustainability measures.

What does the Debt Sustainability Enhancement Program section cover?

It covers FY25 implementation and FY26 formulation of performance policy actions, plus a review of enhancements made to the Sustainable Development Finance Policy.

How does the document evaluate outcomes and where are supporting details found?

It assesses impact on select outcome indicators and includes supporting evidence through a list of annexes and figure tables detailing trends and results.

Jul 19, 2026

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