About Development Policy Financing:
- It provides rapidly disbursing financing to help a borrower address actual or anticipated development financing requirements.
- It supports borrowers in achieving poverty reduction and climate-friendly sustainable and inclusive growth through a program of policy and institutional actions.
- For example: Strengthening public financial management, improving the investment climate, addressing bottlenecks to improve service delivery, and diversifying the economy.
- It can be extended as loans, credits/grants, or guarantees.
- It is an initiative of the World Bank.
- Funds are made available to country based on
- Maintenance of an adequate macroeconomic policy framework, as determined by the Bank with inputs from IMF assessments;
- Satisfactory implementation of the overall reform program;
- Completion of a set of critical policy and institutional actions agreed between the Bank and the client
- Alignment with the Goals of the Paris Agreement
