Public Sector Lending

Over the years OFID has spread its public sector lending activities to 100 countries around the world. Of these, 46 are in Africa, 30 in Asia, 22 in Latin America and the Caribbean, and two in Europe. All economic and social sectors have benefited from OFID assistance.

Since its inception, OFID has implemented 16 lending programs, the last of which covered the period 2005-2007. The Seventeenth Lending Program, approved for a three-year period, became effective January 1, 2008.

On a cumulative basis and by the end of January 2010, US$8,595 million had been committed in the form of loans, and US$5,140 million had been disbursed. As of January 1, 2009, 74% of all outstanding loans were with Low Income Countries and 50% of all commitments were to Africa.

Numbering 1,255, the loans are divided into the following categories:

• Project financing: 990 loans valued at US$7,218 million
• Balance of payments support: 185 loans totaling US$724 million
• Program financing: 44 loans amounting to US$333 million
• HIPC Initiative: 37 loans amounting to US$270 million
• PRGF Trust of the IMF: 1 loan of US$50 million

Related links

Commitments in 2009: Public Sector

 

Least Developed Countries

From the very beginning, OFID has recognized the severity of the development constraints facing the least developed countries (LDCs), the most impoverished group in the world economy. Accordingly, every effort is made to give them special consideration. As of December 2009, more than half of OFID's lending commitments has gone to support operations in those countries.

HIPC Initiative

OFID has always paid particular attention to the problems of the least developed countries (LDCs), the most impoverished group in the world economy. Cumulatively, more than half of the organization’s lending commitments has gone to support operations in those countries, which presently number 49.

One of the biggest barriers to development in these countries is the large external debt that many of them bear, despite recent international moves to reduce their debt burden. OFID actively participates in the Heavily Indebted Poor Countries (HIPC) Initiative, a scheme launched by the international donor community to reduce the external debt of eligible countries to sustainable levels through a strategy of burden-sharing among all creditors. The scheme was started in 1996, at the suggestion of the World Bank and the IMF. To become eligible, beneficiary countries have to pursue sound economic and social reform targeted at measurable poverty reduction, thus encouraging sustainable development aimed at assisting the poorest of the poor.

OFID is honoring its responsibilities under the Initiative and by the end of December 2009, 26 countries had benefited from OFID debt relief totaling US$270 million under the Initiative.