MICROCAPITAL BRIEF: World Bank’s International Development Association (IDA) Approves $300m Credit to Support “Housing Finance Project,” Housing Microfinance, in Nigeria

The International Development Association (IDA), the arm of US-based World Bank that provides interest-free credits and grants for programs in the poorest countries, has approved credit of USD 300 million to support Nigeria’s Housing Finance Project, which intends to provide access to long-term home financing for low-income people, including microentrepreneurs as well as those with higher incomes who are buying homes for the first time [1].  These funds will be disbursed by the Nigeria Mortgage Refinance Company, which will be created as part of the project. The company will also create a “mortgage guarantee” product that low-income borrowers can offer to lenders to back their loans. Additional funds will be used to develop a Housing Microfinance (HMF) component to support new or emerging home microfinance products.

During the fiscal year ending in June 2012, IDA provided monetary assistance of approximately USD 14.8 billion across 82 countries. As of July 2013, the World Bank Group has operations in approximately 120 countries and as of June 2012 has active grant and loan portfolio of USD 173 billion.

By Nisha Koul, Research Associate

About International Development Association (IDA): Established in 1960, the International Development Agency (IDA) is the arm of the World Bank that provides interest-free credits and grants for programs in the world’s poorest countries. Loans from IDA have repayment terms stretching over 35 to 40 years, including a 10-year grace period. IDA also provides grants to countries at risk of debt distress. During the fiscal year ending in June 2012, IDA provided monetary assistance of approximately USD 14.8 billion across 82 countries.

About The World Bank Group (WBG): Established in 1944, the World Bank Group (WBG) is a US-based development bank that consists of five institutions, all of which are owned by its member countries. The Group’s mission is to improve living standards for people in the developing world. The World Bank Group encompasses the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); the International Centre for Settlement of Investment Disputes (ICSID) and the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). WBG has 120,000 employees and operations in approximately 120 countries as of July 2013 and an active grant and loan portfolio of USD 173 billion as of June 2012.

Sources and Additional Resources:

[1] World Bank Press Release, “The World Bank Approves Funds to Support Nigeria’s Expansion of its Housing Finance Market,” http://www.worldbank.org/en/news/press-release/2013/09/26/world-bank-support-nigeria-expansion-housing-finance-market

MicroCapital Story, August 28, 2013, “World Bank Group, National Housing Bank, Government of India Sign $100m Agreement for Low-Income Housing Finance Project,” https://www.microcapital.org/microcapital-brief-world-bank-group-national-housing-bank-government-of-india-sign-100m-agreement-for-low-income-housing-finance-project/

MicroCapital Story, August 4, 2013, “World Bank Group (WBG) Announces “Financial Infrastructure Development Project” in Yemen; International Development Association (IDA) Provides Grant of $20m,” https://www.microcapital.org/microcapital-brief-world-bank-group-wbg-announces-financial-infrastructure-development-project-in-yemen-international-development-association-ida-provides-grant-of-20m/

MicroCapital Story, April 15, 2013, “Nigeria Deposit Insurance Corporation to Bailout Microfinance Institutions, Primary Mortgage Banks,” https://www.microcapital.org/microcapital-brief-nigeria-deposit-insurance-corporation-to-bailout-microfinance-institutions-primary-mortgage-banks/

MicroCapital Universe Profile: World Bank Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group

MicroCapital Universe Profile: International Development Association (IDA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Development+Association+%28IDA%29

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