Q. Consider the following statements regarding “International Development Agency (IDA)”:
1.It is also known as the soft window of the World Bank.
2.It provides interest free loans for a period of 35 – 40 years.
Which of the statements given above is/are correct?
Explanation: The International Development Agency (IDA) which is also known as the soft window of the WB was set up in 1960 with the basic aim of developing infrastructural support among the member nations, long-term lending for the development of economic services.
- Its loans, known as credits are extended mainly to economies with less than $895 per capita income.
- The credits are for a period of 35–40 years, interest-free, except for a small charge to cover administrative costs. Repayment begins after a 10-year grace period.
Source: Ramesh Singh