The IDA was established as the soft loan window of the World Bank in September 1960. Its membership is open to all members of the World Bank.
The main objectives of IDA are:
- To provide long-term soft loans to the governments of the world’s poorest countries for poverty alleviation.
- To promote human capital development in the poorest countries.
To achieve these two objectives, the IDA has extended credits to the poorest member countries at concessional rates. Such loans, which are repayable over a period of 30 – 40 years and with a 10 year grace period, are meant for poverty-alleviation related projects e.g. population control, education and health, nutrition, social safety, environment security, etc.