Blended Concessional Finance : The Rise of Returnable Capital Contributions
In new and challenging markets, blended concessional finance - the combining of concessional funds with other types of finance, on commercial terms - is increasingly used to mobilize capital and accelerate high impact private sector investments. Ho...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/347971573041074050/Blended-Concessional-Finance-The-Rise-of-Returnable-Capital-Contributions http://hdl.handle.net/10986/32653 |
| Summary: | In new and challenging markets, blended
concessional finance - the combining of concessional funds
with other types of finance, on commercial terms - is
increasingly used to mobilize capital and accelerate high
impact private sector investments. However, a relatively new
approach for the provision of concessional capital for use
by development finance institutions is emerging - the
returnable capital model. With this new model, principal,
interest, and other amounts are repaid to the original
provider of funds (usually a government) on a regular basis.
Because this can reduce the impact on donor government
budgets, more government funds can become available for
collaboration with the private sector. This note explores
the effects of this new model on incentives, accounting,
resource management, and reporting. |
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