December 19, 2014
Owen Barder, a senior fellow at the Center for Global Development, said: “Now, [donors] can make a sensible judgement about how to structure a loan without having to push it over a threshold to get the whole thing to count, because the more concessional it is, the more it counts as aid.”
“Before there was a cliff-edge problem: [donors] made the loan just concessional enough to get over the 25% grant element threshold and then the whole value of the loan counted as ODA,” he said.