Announced Interest Rates

Announced Interest Rates

The Fund applies a variable interest rate approach to its loans. Borrowing countries may choose between a floating interest rate and an interest rate fixed at the time of disbursement.

Floating Interest Rate

The rate determined on the first working day of each month applies to all loan disbursements made during that month and remains in effect until the interest payment falls due six months later. The rate determined on the first working day of the month in which that payment falls due then applies until the next interest payment date, and so on.

Fixed Interest Rate

The rate determined on the first working day of each month applies to loan disbursements made during that month according to their respective maturities. This rate remains unchanged from the date of disbursement until the maturity of each disbursement.