The World Bank offers two basic types of loans: investment loans for goods, work and services to support economic and social development projects in a broad range of sectors; and adjustment loans to support policy and institutional reforms.
During loan negotiations, the World Bank agrees with the borrowing country on the development objective of the project or program, outputs, performance indicators (to measure the impact and success of the project) and a plan to put it all into practice. Once a loan is approved and becomes effective, the borrower puts the project or program into practice according to the terms agreed with the World Bank.
The World Bank supervises how each loan is used and evaluate the results. All loans are governed by operational policies, which make sure that operations are economically, financially, socially and environmentally sound.
