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:
- World Bank
- African Development Bank
- Asian Development Bank
- European Bank for Reconstruction and Development
- Inter-American Development Bank Group
There are also several "sub-regional" multilateral development banks. Their membership typically includes only borrowing nations. The banks lend to their members, borrowing from the international capital markets. Beacause there is effectively shared responsibility for repayment, the banks can often borrow more cheaply than could any one member nation. These banks include:
- Corporación Andina de Fomento (CAF)
- Caribbean Development Bank (CDB)
- Central American Bank for Economic Integration (CABEI)
- East African Development Bank (EADB)
- West African Development Bank (BOAD)
- Black Sea Trade and Development Bank (BSTDB)
- Eurasian Development Bank (EDB)
There are also several multilateral financial institutions (MFIs). MFIs are similar to MDBs but they are sometimes separated since they have more limited memberships and often focus on financing certain types of projects.
- European Commission (EC)
- European Investment Bank (EIB)
- International Finance Facility for Immunisation (IFFIm)
- International Fund for Agricultural Development (IFAD)
- Islamic Development Bank (IDB)
- Nordic Investment Bank (NIB)
- OPEC Fund for International Development (OPEC Fund)
- Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden NV (FMO)