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Blending grants and loans for financing the EU's development policy in the light of the Commission proposal for a development cooperation instrument (DCI) for 2014-2020, study

Label
Blending grants and loans for financing the EU's development policy in the light of the Commission proposal for a development cooperation instrument (DCI) for 2014-2020, study
Index
no index present
Literary Form
non fiction
Main title
Blending grants and loans for financing the EU's development policy in the light of the Commission proposal for a development cooperation instrument (DCI) for 2014-2020
Oclc number
1232998436
Sub title
study
Summary
For the next Multiannual Financial Framework for 2014-2020 the European Commission proposes to introduce loan and grant blending facilities into the Development Co-operation Instrument (DCI). These facilities have succeeded in leveraging considerable development finance from development banks and other financiers in the countries embraced by the EU Neighbourhood policy, the Balkans and Sub-Saharan Africa. There are justified concerns, however, that these blending facilities are not appropriate to address many development needs and that the assistance in the form of concessional loans can put heavily indebted countries at risk. Nevertheless, the use of blending facilities in the DCI can be beneficial if well devised. They should be used to complement but not substitute for traditional development finance. Furthermore, care is required to ensure that blending instruments are effectively oriented towards poverty reduction, avoiding a return to a focus on investment. To ensure that the blending facilities expand the effectiveness of development finance, the governance and coherence of the instruments need to be reviewed, with the aim of retaining the positive elements of flexibility, but keeping the risks for the beneficiaries low and ensuring a poverty reduction approach
resource.variantTitle
Blending grants and loans in the light of the new DCI