Mixed aid credits are composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates.

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Mixed aid credits are designed to combine both commercial interest rates and subsidized developmental aid interest rates in order to provide financial assistance to developing countries while also encouraging private investment. The exact composition of the interest rates may vary depending on the specific program or lender, but the basic premise is that a portion of the loan will carry a market-based interest rate (similar to a traditional commercial loan) and a portion will carry a very low, concessionary rate that is meant to promote development objectives.

Mixed Aid Credits Are Composed Partially of Commercial Interest Rates