The OECD Consensus requires soft loans to have a concessionality level of at least 35%. Soft loans for "Least Developed Countries" according to the UN-Classification (LDC-countries) must show a grant element of at least 50%.
Concerning soft loan eligible countries which are subject to the "Sustainable Lending Initiative" the grant element has to be furthermore in conformity with the requirements of the International Monetary Fund (IMF).
In order to reach the afore mentioned concessionality level, soft loan financing can be calculated either in the form of a pre-mixed credit (this is a loan with a low interest rate, a grace period and long repayment terms), or a mixed credit (a financing package usually consists of a 15% or as the case may be 20% non refundable grant form the Federal Ministry of Finance and a 85% or as the case may be 80% soft loan).
Please remember that the following terms and conditions are only for information purposes and can be changed at any time. There is no right to financing based on the following conditions. The terms and conditions have to be clarified on a case-by-case basis with OeKB's Credit Department in accordance with the soft loan assessment criteria.
Soft loan terms and conditions