Loans can be made in up to 55 currencies subject to a suitable local partner bank being found that is willing to lend in the local currency. For the overseas borrower (and buyer) it reduces foreign currency risk and avoids a variable debt service cost.
A buyer credit in local currency follows the same format as a conventional buyer credit in a standard currency such as sterling, euros or US dollars except that it is funded from a bank in the buyers country.
Local Currency Financing is particularly suited to projects that do not usually generate foreign currency revenue, such as water/gas/electricity utilities, local transport and local municipalities.
Updates to this page
Published 9 March 2020 Last updated 28 October 2024 +show all updates
Gabon was removed from the list of eligible currencies.
The following currencies have been added as available for local currency financing:Benin, CFA FrancCameroon, CFA FrancGabon, CFA FrancSenegal, CFA FrancTogo, CFA Franc
We no longer have a case-by-case position for local currency financing so the list of these eligible currencies has been removed and the list of current currencies considered has been updated.
Kazakhstan, Kazakhstani tenge now considered on a case-by-case basis.
Croatian Kuna removed.
Nigeria removed from 'case by case' list.
Pakistani rupee removed from list of eligible currencies.
Egyptian pound is now listed under 'Eligible Currencies rather than Currencies considered case-by-case.
Removed Russian ruble and Ukrainian Hryvnia from list of eligible currencies.
