Instruments
The same sector uses different financial instruments.
- Grants No repayment by the recipient. Usually 100% grant element.
- Concessional sovereign loans Public debt with softer terms: grace period, long maturity and low interest.
- Market priced loans Repayable finance with little or no grant element.
- Budget support Money enters the treasury and is tracked through policy and fiduciary conditions.
- Guarantees, equity and blended finance Risk-sharing instruments, often for private investment or infrastructure.