Instruments

Description

Type of beneficiaries

Date of introduction

Equity Funds

Provision of risk capital (usually equity) to specialized operators (equity funds) to invest in enterprises.

Non-Sovereign Organizations

1971

Equity Participations

Acquisition of equity in the capital of financial institutions and/or provision of debt that can be assimilated to capital (subordinated debt). This strengthens the capital base of financial intermediaries so as to allow an expansion of their operations

Non-Sovereign Organizations

2007

Guarantees

Instruments to allow a reduction of the risk borne by intermediaries, who in case of default can recoup (part of) their loss.

Sovereign and

Non-Sovereign

Organizations

1998

Lines of Credit

Provision of credit to financial institutions or national or regional development finance institutions for on-lending for specific projects, often for SMEs.

Sovereign and

Non-Sovereign

Organizations

1969

Risk Participation

Operations allowing the beneficiary intermediary to ‘sell’ its exposure to the Bank to reduce its financial risk exposure.

Non-Sovereign Organizations

2013

Sector Policy-Based Operations (PBOs)

Operations to provide budgetary support to countries or regions combined with institution/capacity building and a platform for continuous policy dialogue to support policy reforms.

Sovereign Organizations

2011 for PBO dedicated to the financial sector

Trade Finance Lines of Credit

Provision of credit to financial institutions dedicated to trade finance, usually with shorter tenor than the conventional line of credit.

Sovereign and

Non-Sovereign

Organizations

Trade finance program introduced in 2013 (successor to the Trade Finance Initiative launched in 2009)

Technical Assistance/Grants

Provision of grants to fund TA to borrowers. Refers to institutional building and project cycle loan and grant operations. As from 1996, TA is provided on a grant basis only.

Sovereign and

Non-Sovereign

Organizations

Over time