Disbursement Procedures - Islamic Development Bank

- Board approval date: The date the executive directors approve the loan. It
determines the schedule of repayments subject to any modifications (Amortization
Schedule).
- Signing date: The date the financing Agreement is signed by the Borrower and the
Bank.
For OCR loans, service fee charges of 4% will start to accrue.
Effective date: The date when all the conditions of effectiveness of the financing
Agreement have been fulfilled by the Borrower. The date is determined by the Bank and it
heralds that disbursements may be made from the loan.
Project Completion date: The date on which the project is considered physically
completed. It proceeds the loan closing date.
Closing Date: The date as specified in the Financing Agreement that the Bank may
terminate the right of the Borrower to make withdrawals from the loan project account.
Conditions precedent to the First Withdrawal
The Borrower shall not be entitled to withdraw any amount from the loan project
account unless the Bank is satisfied that he following requirements have been completed
with:
(a) The signature and delivery of the Loan Agreement and guarantee agreement have
been duly authorized or ratified by all necessary corporation and governmental action.
D-DISBURSEMENT MANUAL (1)
16.5.2000
A:CHAPTER-1