Concessional Partner Loans (CPLs) are IDA Donor loans that provide long-term funding to IDA at concessional interest rates. CPLs were introduced in IDA17 and continue as a source of funding in IDA19 with similar terms. The borrowing terms of the concessional loans from members aim to follow the concessional features of IDA’s loans. The most recent IDA CPL framework details can be found in the IDA19 CPL framework (pdf).
Originally IDA only allowed CPL to be provided in SDR basket currencies. Starting from IDA19, IDA introduced the CPL currency conversion, which is a change of the CPL currency of all or any amount of the withdrawn or unwithdrawn CPL balance to a non-SDR currency which IDA can fully hedge against. The eligible currency is approved from time to time in each IDA replenishment resolution.
The CPL currency conversion is governed by IDA CPL currency conversion guidelines (pdf).
During the conversion process, IDA establishes the transaction fees regarding the conversions and early terminations of the conversions, as outlined in the guidelines. IDA revises its fees from time to time, and such revised fees apply to any conversion and early terminations requested after the effectiveness date of any such revision. The current transaction and unwinding fees are as displayed below:
| Type of fees | Transaction fees | Unwinding fees |
|---|---|---|
| CPL currency conversion fee Level | 2bps | 2bps |
Any CPL currency conversion can be required by filling and submitting the IDA CPL currency conversion application form (pdf).