International Development Association (IDA) is an international organization that provides loans to less developed countries. The IDA and the International Bank for Reconstruction and Development (IBRD) comprise the organization known as the World Bank. The World Bank is a specialized agency of the United Nations. The IDA is one of the largest sources of assistance for the world’s poorest countries.
Loans from the IDA are intended to boost economic growth, reduce inequalities, and improve living conditions. The loans are without interest, and countries are allowed up to 50 years to repay the money they borrowed. The IDA was formed in 1960 to aid countries that needed financial assistance but could not borrow enough money on conventional terms.
