Development Finance Definitions

Topic: Economics
Source: AidData

Definitions of the various types of development finance are provided below.

Official Development Assistance (ODA):

  • Provided by official agencies
  • Concessional in terms (>= 25% grant element)1
  • Promotes the economic development and welfare of the recipient country

Other Official Flows (OOF):

  • Provided by official agencies
  • Non-concessional in terms (< 25% grant element)
  • Targeted at commercial and representational gains

Vague:

  • Projects that are officially financed, but lack the necessary information to determine whether it is ODA or OOF.

Source: AidData

 

  1. A measure of the concessionality of a loan. A loan with 0 percent grant element is considered non-concessional.