Page "International Development Association" Paragraph 49

The IDA is a unique part of the World Bank as it requires continuous replenishment of its resources.

Member countries replenish its funds through contributions in addition to supplementary funds provided by the International Bank for Reconstruction and Development and the International Finance Corporation ( IFC ).

Whereas the IBRD acquires most of its funds by raising capital on international financial markets, the IDA heavily depends on contributions from its member states.

The IDA received 2 billion in special drawing rights ($ 3 billion USD ) from the IBRD and IFC.

Approximately half of the IDA's resources come from the 45 donating member countries.

In its early years, the IDA received most of its replenishments from the United Kingdom and United States but, because they were not always reliable sources of funding, other developed nations began to step in and fill the economic gaps not met by these two countries.

Every three years, member nations that provide funds to the IDA gather together to replenish the IDA's resources.

These funds come primarily from well-developed countries including the United States, Japan, France, Germany, and the United Kingdom with 58 % from the US, 22 % from France, and 8 % from the UK.

As of 2012, there have been 16 IDA replenishment rounds.

Fifty one member countries participated in the IDA's 16th replenishment of $ 49. 3 billion USD.

The IDA's loans and grants are usually not paid in full to the borrower at the outset, but rather disbursed incrementally as needed by the for carrying out the project.

Most of the donor countries such as the United States commit letters of credit to the IDA which bear no interest and are not able to be transferred or revoked, and which are exchanged for cash as needed for project disbursal.

Other countries pay their contributions in full on the date of commitment to the IDA so that it may cover its operating expenses.

Donors receive no return of funds and repayments from borrowers are again loaned to future projects such that donors won't need to commit those funds again in the future.