| Notes |
What is this new finance mechanism?
• IFFEd is a new, innovative financing facility designed to
help close the chronic education funding gap in LMICs
and support achievement of SDG 4 – ensuring inclusive, quality education and lifelong learning opportunities for all.
• IFFEd is also a robust response to the call for new
financing initiatives under the Addis Ababa Action Plan
to finance the SDGs and leverage “billions to trillions.”
• The Facility will increase the capacity of the MDBs to
finance education in LMICs by providing them additional lending headroom for education projects and
improving the concessionality of the education financing packages for eligible countries beyond what the
MDBs can currently offer them.
• COVID-19 brings new urgency to the Facility, as eligible countries are facing severe budget constraints that
will make it difficult to protect education budgets. The
World Bank reports that education spending is likely to
stagnate or fall in some countries due to budget deficits
caused by the crisis. |