How can borrowers access IBRD local currency financing?
For Fixed Spread Loans (FSL) and IBRD Flexible Loans (IFL), borrowers may request to have all or a portion of disbursed loan balances converted into a local currency for which swap markets exist and are sufficiently liquid. Two mechanisms are available: – Conversion request: request the conversion of all or a portion of the disbursed amounts into local currency, at any time during the life of the loan. – Automatic currency conversion upon disbursement: each disbursement and its currency of repayment are automatically converted into a new currency, including local currency, at the time of disbursement. For all other IBRD loans as well as for debt obligations owed to lenders other than IBRD, the borrower can access stand-alone currency swaps, upon signing a Master Derivatives Agreement with the Bank, to transform their foreign currency debt obligations into local currency. Information on currency swap terms and request procedures, please see ‘Hedging Products’ section. The availability o
