JAKARTA. The World Bank Group will pursue an innovative financing method that combines grants from donor countries with the bank’s resources to create lower cost project financing for infrastructure in Indonesia. With the “blended financing” and the “first loss guarantee,” the bank will combine funds from donor countries such as the Nordic countries to the bank's resources to cut down the interest rate on the loan and reduce risk, said World Bank president Jim Yong Kim at the Indonesia Infrastructure Finance Forum in Jakarta on Tuesday. Kim added that such blending had successfully attracted conservative funds like insurance companies to invest in developing country infrastructure projects.
World Bank offers blended financing for Indonesia
JAKARTA. The World Bank Group will pursue an innovative financing method that combines grants from donor countries with the bank’s resources to create lower cost project financing for infrastructure in Indonesia. With the “blended financing” and the “first loss guarantee,” the bank will combine funds from donor countries such as the Nordic countries to the bank's resources to cut down the interest rate on the loan and reduce risk, said World Bank president Jim Yong Kim at the Indonesia Infrastructure Finance Forum in Jakarta on Tuesday. Kim added that such blending had successfully attracted conservative funds like insurance companies to invest in developing country infrastructure projects.