Leveraging mechanisms

Among the strategies that have been used are loans, guarantees, equity financing, debt conversions, co-financing, and cost-sharing. These mechanisms are viable and important means for increasing the funding available to achieve development objectives, but they should not be pursued solely to create financial leverage. Donors and implementing organizations should continue to focus their attention and resources on achieving their overall programmatic objectives and should employ these leveraging mechanisms only when they clearly contribute to those objectives. (Author abstract)