<P> The IDA is a unique part of the World Bank as it requires continuous replenishment of its resources . Member countries replenish its funds through contributions in addition to supplementary funds provided by the International Bank for Reconstruction and Development and the International Finance Corporation (IFC). Whereas the IBRD acquires most of its funds by raising capital on international financial markets, the IDA heavily depends on contributions from its member states . The IDA received 2 billion in special drawing rights ($3 billion USD) from the IBRD and IFC . Approximately half of the IDA's resources come from the 45 donating member countries . In its early years, the IDA received most of its replenishments from the United Kingdom and United States but, because they were not always reliable sources of funding, other developed nations began to step in and fill the economic gaps not met by these two countries . Every three years, member nations that provide funds to the IDA gather together to replenish the IDA's resources . These funds come primarily from well - developed countries including the United States, Japan, France, Germany, and the United Kingdom with 58% from the US, 22% from France, and 8% from the UK . As of 2014, there have been 17 IDA replenishment rounds . Fifty one member countries participated in the IDA's 16th replenishment of $49.3 billion USD . The IDA's loans and grants are usually not paid in full to the borrower at the outset, but rather disbursed incrementally as needed by the project . Most of the donor countries such as the United States commit letters of credit to the IDA which bear no interest and are not able to be transferred or revoked, and which are exchanged for cash as needed for project disbursal . Other countries pay their contributions in full on the date of commitment to the IDA so that it may cover its operating expenses . Donors receive no return of funds and repayments from borrowers are again loaned to future projects such that donors won't need to commit those funds again in the future . </P> <P> Although the IDA's funds are now regularly replenished, this does not happen without some financial and political challenges for the donating countries . When donor countries convene to negotiate the replenishments, there is often intense discussion about redefining the association's goals and objectives or even about reforming the IDA . Due to delays in the United States Congress impeding the approval of IDA funding, the association's members implemented a set of policy triggers outlining the commitment threshold necessary for replenishment to take effect . The threshold imposed a requirement that an aggregate share of 85% in voting stock is necessary for executing a replenishment . The threshold was implemented with the aim to compel the United States to participate in replenishment rounds . Though countries intended for the triggers to hold the United States to its commitments, the threshold ultimately provided the United States a de facto veto power over replenishment and capital increase negotiations due to its ability to bring replenishment negotiations to an impasse by threatening to withhold support . The U.S. has used this influence to further its long - term foreign policy objectives and short - term political and economic goals by imposing conditionality on replenishment negotiations . </P> <P> The IDA lends to countries with the aim to finance projects that will develop infrastructure and improve education, healthcare, access to clean water and sanitation facilities, and environmental responsibility . It is considered to be the soft lending window of the World Bank, while the IBRD is considered to be the hard lending window . The association offers grants and loans with maturities ranging from 25 to 40 years, grace periods of 5 to 10 years, and interest rates of 2.8% or 1.25% depending on whether the borrower is a blend country and to which degree it is eligible . Regular IDA - eligible borrowers may take advantage of no - interest loans . Financial resources are allocated to eligible countries based on their success at implementing pro-growth and a poverty - reducing domestic policies . The IDA uses the World Bank's Country Policy and Institutional Assessment (CPIA) development indicator to determine each country's place in a resource allocation index . It then prioritizes its lending to those countries which are indicated to be most promising in terms of favorable policies and aid effectiveness . The IDA adopted the Crisis Response Window in 2007 to enable the rapid provision of emergency financing in response to crises . The association adopted the Immediate Response Mechanism in 2011 to provide IDA borrowers with immediate access to withdraw undisbursed portions of their loans, should a crisis arise that meets the mechanism's criteria . </P> <P> Because African countries face some of the most severe poverty and underdevelopment, and because 39 of those countries are the IDA's poorest member states, the association allocates approximately half of the IDA's resources toward financing projects in those countries . As a result of its efforts to improve the region, the IDA has helped bring electricity to an additional 66 million Africans since 1997, helped build or restore 240,000 kilometers of paved roads, and helped enroll an additional 15 million African children in school since 2002 . The IDA was approved in May 2012 to provide $50 million USD worth of credit to the Women Entrepreneur Development Project as part of an effort to help women in Ethiopia participate in business as skilled employees or leaders . Although the positive outcomes of the IDA's efforts in Africa had been historically slow, the large allocation of funding to African countries led to positive outcomes particularly within agriculture and infrastructure development efforts . </P>

Which institute is known as soft loan window of world bank