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Tuesday, 11 July 2017

Which institution is known as Soft loan window of World Bank?

  By GK Planet Team       Tuesday, 11 July 2017
Q. Which, Institution is known as the "Soft Loan Window" of World Bank?
  1. I.F.C. (International Financial Corporation)
  2. I.D.A. (International Development Association)
  3. I.M.F. (International Monetary Fund)
  4. Indian Development Forum
Answer: I.D.A. (International Development Association)
A Soft Loan is a loan with a below-market rate of interest. This is also known as soft financing. Sometimes soft loans provide other concessions to borrowers, such as long repayment periods or interest holidays. Soft loans are usually provided by governments to projects they think are worthwhile. The World Bank and other development institutions provide soft loans to developing countries.
The International Development Association (IDA) is an international financial institution which offers concessional loans and grants to the world's poorest developing countries. The IDA is a member of the World Bank Group and is headquartered in Washington, D.C., United States. It was established in 1960 to complement the existing International Bank for Reconstruction and Development by lending to developing countries which suffer from the lowest gross national income, from troubled creditworthiness, or from the lowest per capita income. Together, the International Development Association and International Bank for Reconstruction and Development are collectively generally known as the World Bank, as they follow the same executive leadership and operate with the same staff.

Soft loan Window of World Bank →International Development Association

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