2006年-世界发展银行全球_World_Bank_Lending_for_Lines_of_Credit___An_IEG_Evaluation_98页_1mb

World Bank Lending for Lines of Credit: An IEG Evaluation Summary

Core Content

This document is an evaluation by the Independent Evaluation Group (IEG) of the World Bank's lending for lines of credit (LOC) during the fiscal years 1993–2003. It assesses the effectiveness of LOC in contributing to development outcomes, analyzes the implementation of Bank guidelines, and identifies areas for improvement.

Main Findings

• Total Commitments: $13.4 billion were approved for LOC during FY93-FY03, representing 8.4% of the Bank's total investment lending.
• Trends: There has been a sharp decline in LOC commitments, from around 10% in the early 1990s to less than 2% in FY02-FY03.
• Sector Distribution: The majority of LOC were in the rural and financial sectors, with municipal lending also being significant.
• Implementation of Guidelines: The implementation of Bank guidelines for LOC was found to be poor, with many LOC not following the required procedures and standards.
• Outcome Ratings: Only 45% of LOC had satisfactory outcomes by net commitments, and 52% by number of loans, indicating unacceptably low performance.
• Cancellation Rates: Over 40% of original LOC commitments were canceled, more than double the cancellation rate of other investment loans.
• Factors Affecting Outcomes: Better outcomes were associated with stable macroeconomic conditions, strong financial sectors, clear eligibility criteria, and the use of private sector financial intermediaries.
• Environmental Considerations: Only about one-half of LOC mentioned environmental impact at appraisal, and one-third had no environmental assessment for subprojects.

Key Points

1. Guidelines and Implementation

• The Bank's guidelines for LOC were first formalized in Operational Directive (OD) 8.30 (1992) and later replaced by Operational Policy (OP) 8.30 (1998).
• OD 8.30 emphasized macroeconomic stability, sound financial sector regulation, and sustainability.
• OP 8.30 simplified the guidelines but retained the core principles of OD 8.30. It introduced safeguards, particularly environmental considerations, and required annual review of financial statements of intermediaries.
• Despite these guidelines, implementation was inconsistent, with many LOC not adhering to the standards set out.

2. Quality of LOC Design and Monitoring

• Eligibility criteria were often unclear or weak, with only about half of the projects using them.
• Financial information on loan portfolios and repayment rates was frequently missing, especially in completion reports.
• Environmental assessments were rarely included in the design of LOC, even for those that could have an impact.
• Quality Assurance Group (QAG) was expected to use guidelines in its reviews, but the extent of compliance was not always reflected in its ratings.

3. Outcomes and Cancellations

• Satisfactory outcomes were low, with only 45% by net commitments and 52% by number of loans.
• Best outcomes were seen in the rural sector (67% by number of loans), while Private Sector Development (PSD) had the worst (10% by number of loans).
• Cancellation rates were high, with over 40% of original commitments canceled, largely due to poor performance or lack of data.
• Smaller LOC had lower cancellation rates, suggesting that scale may impact success.

4. Recommendations

• Update LOC guidelines to reflect recent developments in financial instruments and risk management, particularly foreign exchange risk.
• Ensure that all LOC components are systematically identified in Bank-funded projects.
• Improve data collection on key indicators such as repayment rates and portfolio quality.
• Enhance coordination with other multilateral development banks and donors to align guidelines and reduce discrepancies.
• Strengthen the role of the Financial Sector Network in reviewing LOC components during appraisal.
• Provide more detailed information in Implementation Completion Reports (ICRs) for projects with significant LOC.
• Evaluate IFC's portfolio of LOC, as the IFC has taken over much of the role of investing in financial intermediaries.

Conclusion

Despite the decline in LOC lending, they are still used as a tool by the Bank, especially in support of middle-income countries. The evaluation highlights the need for better implementation of guidelines, improved data collection, and stronger monitoring to enhance the effectiveness of LOC in development outcomes.