fbpx Lending Policies | Asian Development Bank

Lending Policies

ADB uses a classification system to determine the eligibility of developing member countries (DMCs) to borrow from ordinary capital resources (OCR) at near-market terms, or at concessional OCR loan (COL) terms, or to receive grants from the Asian Development Fund (ADF).

Based on two main criteria (i) per capita income and (ii) creditworthiness, DMCs are classified into:

  • Concessional assistance-only: those in need of greatest concessionality,
  • Ordinary capital resources (OCR) blend: those that need some concessionality, and
  • Regular OCR only: those in need of least concessionality.

DMCs within these groups are further differentiated to determine the mix of funds and lending terms they can access, based on ADB’s (i) concessional assistance policy and (ii) policy on diversified financing terms (effective 2021).

ADB’s lending policies

Classification of DMCs in 2020

Eligibility and Terms Developing Member Countries
Concessional Assistance  
ADF-only (100% ADF grants) Afghanistan, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Samoa, Tajikistan, Tonga, Tuvalu
ADF Blend
(Blend of ADF grants and COL on group A terms)
Kyrgyz Republic, Maldives, Solomon Islands, Vanuatu
(100% COL on group A terms)
Bhutana, Cambodia, Lao People’s Democratic Republica, Myanmara, Nepal
OCR blend
(Blend of COL on group B terms and regular OCR)
Bangladesh, Mongolia, Pakistan, Palau, Papua New Guinea, Timor-Leste, Uzbekistan
Regular OCR only(100% regular OCR) In 2020, regular OCR terms are the same for all.
Differentiated terms will take effect beginning 2021.
C0. SIDS below the IBRD income cutoff and new group C Fiji, Sri Lanka, Viet Nam
C1. SIDS above the IBRD income cutoff and LMICs Armeniab, Cook Islands, Georgiab, Indiac, Indonesia, Philippines
C2. UMICs below the IBRD income cutoff Azerbaijan, Thailand, Turkmenistan
C3. UMICs above the IBRD income cutoff People’s Republic of China, Kazakhstan, Malaysia
C4. HICs  

ADF = Asian Development Fund; COL = concessional ordinary capital resources lending; HICs = high income countries; IBRD = International Bank for Reconstruction and Development; LMICs = lower middle income countries; OCR = ordinary capital resources; SIDS = small island developing states; UMICs = upper middle income countries.

a Gap countries not eligible for ADF grants.
b UMICs for no more than 2 consecutive years.
c Group B with no access to concessional assistance.

Developing members: Afghanistan; Armenia; Azerbaijan; Bangladesh; Bhutan; Brunei Darussalam; Cambodia; People’s Republic of China; Cook Islands; Georgia; India; Indonesia; Fiji; Hong Kong, China; Kazakhstan; Kiribati; Republic of Korea; Kyrgyz Republic; Lao People’s Democratic Republic; Malaysia; Maldives; Marshall Islands; Federated States of Micronesia; Mongolia; Myanmar; Nauru; Nepal; Niue; Pakistan; Palau; Papua New Guinea; Philippines; Samoa; Singapore; Solomon Islands; Sri Lanka; Taipei,China; Tajikistan; Thailand; Timor-Leste; Tonga; Turkmenistan; Tuvalu; Uzbekistan; Vanuatu; Viet Nam.

Five developing members—Brunei Darussalam; Hong Kong, China; the Republic of Korea; Singapore; and Taipei,China—have graduated from regular ADB assistance. Graduation from regular ADB assistance is not linked to the DMC status of the country, and it does not signify termination of a DMC’s relationship with ADB.

By making any designation of or reference to a particular territory or geographical area, or by using the term "country" in the website, ADB does not intend to make any judgment as to the legal or other status of any territory or area. Boundaries, colors, denominations or any other information shown on maps do not imply, on the part of ADB, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information. .