What does the World Bank, IMF, or Paris Club take for collateral or do they not require any?

Question

What does the World Bank, IMF, or Paris Club take for collateral or do they not require any?

Answer 1

There isnt necessarily a collateral that these institutions need or require from other governments in certain instances.  But, they do make them sign agreements or contracts with severe stipulations that bind them to pay.  Granted, often times the money is squandered and lost to corruption, bad management, etc. and cannot be repaid.  This is the whole issue with debt forgiveness or refinancing that is occurring in Africa currently.  Usually the stipulations from these organizations are things like, the government must allocate these funds to certain projects (typically things like sustainable development, infrastructure, etc.), that they must spend the money on certain businesses or economic areas (typically agriculture, or something that the government can achieve a comparative advantage on), or a variety of other stipulations.  We rarely see collateral involved as most of the time the countries who recieve these loans have little to nothing to pay them back with.

Answer 2

The big financial institutions require the borrowing government to guarantee payment such as increasing tax rates or implementation generating programs.