Term:
Contingent Obligation
Definition:
Type of IBRD "B" loan whereby the loan is initially financed entirely by the commercial lender with IBRD having a contingent commitment to finance at a given date (i.e., at the end of the duration considered "normal" by the commercial markets for the specific borrower) the remaining balance of principal (if any), if the commercial lenders choose not to finance this amount.
Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt