Terms and Conditions of Japanese ODA Loans (Effective from April 1, 2011)

Category GNI Per Capita (2009) Standard/
Option		 Interest Rate (%) Repayment Period (Year) Grace Period (Year) Conditions for Procurement
Low-Income Countries Minimal Interest Rate
"MIRAI"		 0.01 40 10 Untied
Least Developed Countries General
Terms		 Standard 0.70 30 10 Untied
Option1 0.65 25 7
Option2 0.60 20 6
Option3 0.55 15 5
Preferential
Terms		 Standard 0.55 40 10 Untied
Option1 0.45 30 10
Option2 0.40 20 6
Option3 0.30 15 5
Low-Income
Countries		 -US$995 General
Terms		 Standard 1.20 30 10 Untied
Option1 0.90 25 7
Option2 0.75 20 6
Option3 0.65 15 5
Preferential
Terms		 Standard 0.55 40 10 Untied
Option1 0.45 30 10
Option2 0.40 20 6
Option3 0.30 15 5
STEP Standard 0.20 40 10 Tied
Option 0.10 30 10
Lower-
Middle-Income
Countries		 US$996-US$1,905 General
Terms		 Standard 1.40 30 10 Untied
Option1 0.80 20 6
Option2 0.70 15 5
Preferential
Terms		 Standard 0.65 40 10 Untied
Option1 0.55 30 10
Option2 0.50 20 6
Option3 0.40 15 5
STEP Standard 0.20 40 10 Tied
Option 0.10 30 10
Middle-Income
Countries		 US$1,906-US$3,945 General
Terms		 Standard 1.40 25 7 Untied
Option1 0.95 20 6
Option2 0.80 15 5
Preferential
Terms		 Standard 0.65 40 10 Untied
Option1 0.55 30 10
Option2 0.50 20 6
Option3 0.40 15 5
STEP Standard 0.20 40 10 Tied
Option 0.10 30 10
Upper-Middle-Income
Countries		 US$3,946-US$6,885 General
Terms		 Standard 1.70 25 7 Untied
Option1 1.60 20 6
Option2 1.50 15 5
Preferential
Terms		 Standard 1.20 25 7 Untied
Option1 1.00 20 6
Option2 0.60 15 5
Consulting Services For consulting services, the interest rate will be minimal (0.01%) and the repayment, grace periods and conditions for procurement will be the same as those for main components.
Options for Program Type Japanese ODA Loan In case of co-financing, it is possible to apply the same repayment terms as co-financer's lending while maintaining the concessionality of Japanese ODA Loans. For countries complying with ongoing IMF-supported programs or receiving grants from IDA, it is possible
  • STEP (Special Terms for Economic Partnership) is set and reconsidered on January 15 every year to make a tied aid eligible.
  • The concessionality level of optional terms does not exceed that of standard terms.
  • Under the EPSA initiative, the loan for projects co-financed with the AfDB are extended using "Preferential Terms", determined for each income category; in the case for low-income LDCs, the terms are MIRAI.
  • A two-step loan extended to the AfDB to cover its sub-loans to private enterprises under EPSA is extended using the term and condition of 0.55% interest rate and 40-year repayment period including 10-year grace period.
  • Irrespective of the country category, the terms applied for projects assisting recoveries from disasters are MIRAI.
  • The terms applied for Emergency Budget Support Japanese ODA Loan is Yen BBA LIBOR 6 month, repayment period 15 year (grace period 3 year).

Terms and Conditions of "Climate Change ODA Loan" (Effective from April 1, 2011)

Category GNI Per Capita (2009) Standard/
Option		 Interest Rate (%) Repayment Period (Year) Grace Period (Year) Conditions for Procurement
Low-Income
Countries		 Minimal Interest Rate
"MIRAI"		 0.01 40 10 Untied
Least Developed Countries Untied Standard 0.20 40 10 Untied
Option1 0.15 30 10
Option2 0.10 20 6
Low-Income
Countries		 -US$995 Untied Standard 0.25 40 10 Untied
Option1 0.20 30 10
Option2 0.15 20 6
Option3 0.10 15 5
STEP Standard 0.10 40 10 Tied
Lower-
Middle-Income
Countries		 US$995-US$1,905 Untied Standard 0.30 40 10 Untied
Option1 0.25 30 10
Option2 0.20 20 6
Option3 0.15 15 5
STEP Standard 0.10 40 10 Tied
Middle-Income
Countries		 US$1,906-US$3,945 Untied Standard 0.30 40 10 Untied
Option1 0.25 30 10
Option2 0.20 20 6
Option3 0.15 15 5
STEP Standard 0.10 40 10 Tied
Upper-
Middle-Income
Countries		 US$3,946-US$6,885 Untied Standard 0.60 40 10 Untied
Option1 0.50 30 10
Option2 0.40 20 6
Option3 0.30 15 5
Consulting Services For consulting services, the interest rate will be minimal (0.01%) and the repayment, grace periods and conditions for procurement will be the same as those for main components.
  • STEP (Special Terms for Economic Partnership) is set and reconsidered on January 15 every year to make a tied aid eligible.
  • The concessionality level of optional terms does not exceed that of standard terms.
  • Under the EPSA initiative, the loan for projects co-financed with the AfDB are extended using "Preferential Terms", determined for each income category; in the case for low-income LDCs, the terms are MIRAI.
  • A two-step loan extended to the AfDB to cover its sub-loans to private enterprises under EPSA is extended using the term and condition of 0.55% interest rate and 40-year repayment period including 10-year grace period.
  • Irrespective of the country category, the terms applied for projects assisting recoveries from disasters are MIRAI.
  • Sectors and Fields of Preferential Terms and Special Terms for Economic Partnership (STEP)
  • Major Economics Classified by Income Category