Donor countries have pledged a record $100 billion three-year replenishment of the World Banks fund for the poorest nations, providing a vital lifeline for their struggles against crushing debts, climate disasters, inflation and conflict.
The World Bank made the announcement early on Friday in Seoul at a pledging conference for the International Development Association, which provides grants and very low interest loans to some 78 low-income countries.
The total exceeds the previous $93 billion IDA replenishment announced in December 2021. Countries will contribute about $24 billion directly to IDA, but the fund will issue bonds and employ other financial leverage to stretch that to the targeted $100 billion in grants and loans through mid 2028.
“This funding will be deployed to support the 78 countries that need it most,” World Bank President Ajay Banga said in a statement, referring to the developing countries that are eligible for IDA support.
It would, he added, help provide “resources to invest in health, education, infrastructure, and climate resilience,” as well as helping to stabilize economies and create jobs.
IDA replenishment is a crucial part of the Bank’s operations, and happens once every three years, with much of the funding coming from the United States, Japan and several European countries including the United Kingdom, Germany and France.
This year, the United States announced ahead of time that it would commit a record $4 billion in new funding to the IDA, while other countries – including Norway and Spain – also significantly stepped up their financial support.
