Blended Concessional Finance and COVID-19
Blended concessional finance, the combination of commercial funds from development finance institutions (DFIs) and the private sector with concessional finance from public institutions, foundations, or other contributors, has become much more promi...
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| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/106651616478705330/Blended-Concessional-Finance-and-COVID-19 http://hdl.handle.net/10986/35332 |
| Summary: | Blended concessional finance, the
combination of commercial funds from development finance
institutions (DFIs) and the private sector with concessional
finance from public institutions, foundations, or other
contributors, has become much more prominent in recent years
as an effective method of spurring innovative private sector
projects and programs in emerging markets. These
concessional funds are being used in high-risk countries and
for pioneering, innovative investments that can lead to
dynamic growth and job creation and help meet the United
Nations’ Sustainable Development Goals. In the wake of the
COVID-19 pandemic, governments, development institutions,
and private companies are trying to find mechanisms to
prevent the loss of essential economic activity under
difficult and uncertain market conditions. In this context,
blended concessional finance deployed by DFIs is already
playing an even greater role than in the recent past, as it
can help bridge critical financing gaps by placing important
projects within the risk tolerance of private sector
investors and DFIs, despite great market and financial
uncertainty. Blended concessional finance will play a
critical role to ensure that the response to the pandemic
remains focused on the most difficult markets and, as
efforts to rebuild are put in motion, the rebuilding is done
in an inclusive and climate and gender-smart manner. |
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