B.09/04: Financial terms and conditions of the Fund’s instruments
The Board, having reviewed document GCF/B.09/08 Financial Terms and Conditions of the Fund’s Instruments:
- Notes that the Fund will provide grants both with and without repayment contingency;
- Adopts the financial terms and conditions of grants and concessional loans as contained in Annex II to this document;
- Decides that use of grants with repayment contingency shall be limited to the private sector and that their terms and conditions shall be determined on a case-by-case basis;
- Also decides that the Fund will use differentiated terms for outgoing concessional loans to the public sector following the principles and factors set out in Annex III to decision B.05/07;
- Further decides the financial terms and conditions for non-grant instruments to the public sector, other than concessional loans, will be established on a case-by-case basis;
- Decides that all non-grant instruments extended to the private sector shall be determined on a case-by-case basis, taking into consideration Annex III to decision B.05/07 and section III in Annex XIV to decision B.07/06;
- Notes the need for the Fund, when making funding decisions, to consider the terms and conditions of the proposed financial instruments by the Accredited Entity to the recipient, as well as the financial terms and conditions of the financial instruments being requested from the Fund;
- Decides to review the financial terms and conditions of the Fund’s instruments on an annual basis;
- Requests the Secretariat to prepare and submit for the Board’s consideration at its tenth meeting a brief guideline on the application of the case-by-case provisions in the financial terms and conditions of the Fund’s instruments; and
- Decides to consider at the tenth meeting of the Board a proposal regarding the cases in which the high level concessional terms and the low level concessional terms in Annex II, table 2, for public sector proposal will apply.