Go to Statistics Portal

GRANT ELEMENT

Statistics Directorate    
Definition:
The grant element reflects the financial terms of a transaction: interest rate, maturity (interval to final repayment) and grace period (interval to first repayment of capital). It is a measure of the concessionality (softness) of a loan. It is calculated as the difference between the face value of a loan and the discounted present value of the service payments the borrower will make over the lifetime of the loan, expressed as a percentage of the face value.

Source Publication:
OECD, 2004, Development Co-operation Directorate (DAC), Glossary - CRS aid activity database, OECD, Paris.

Hyperlink:
http://www.oecd.org/dac/dacglossaryofkeytermsandconcepts.htm#Grant_Element

Statistical Theme: Financial statistics

Created on Friday, May 24, 2002

Last updated on Wednesday, June 12, 2013