Multilateral development bank

Multilateral development bank

A multilateral development bank (MDB) is an institution, created by a group of countries, that provides financing and professional advising for the purpose of development. MDBs have large memberships including both developed donor countries and developing borrower countries. MDBs finance projects in the form of long-term loans at market rates, very-long term loans (also known as credits) below market rates, and through grants.

The following are usually classified as the main MDBs:

There are also several "Sub-Regional" Multilateral Development Banks. Their membership typically includes only borrowing nations. The banks borrow from and lend to their members. These banks include:

There are also several Multilateral Financial Institutions (MFIs). MFI's are similar to MDBs but they are sometimes separated since they have more limited memberships and often focus on financing certain types of projects.


See also

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