world_organizations medium MCQ

IFAD's financing instruments include concessional loans, grants, and which of the following to leverage additional resources for rural development?

  1. Equity investments
  2. Debt forgiveness
  3. Currency swaps
  4. Sovereign guarantees

Answer: Equity investments

IFAD uses a mix of financing tools: highly concessional loans, grants, and equity investments in funds or enterprises. This blended finance approach mobilizes additional public and private capital for smallholder agriculture, rural enterprises, and climate-resilient infrastructure.

Topic International Fund for Agricultural Development
Exam Relevance UPSC, SSC
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