World Bank fund for poorest nations gets a $93b injection of cash

The World Bank has announced a $93 billion replenishment package of the International Development Association (IDA) to help low-income countries respond to the COVID-19 crisis and build a greener, more resilient, and inclusive future.

The global lending agency on Wednesday said that the financing brought together $23.5 billion of contributions from 48 high- and middle-income countries with financing raised in the capital markets, repayments, and the World Bank’s own contributions.

According to a press release, published on World Bank website on Wednesday, the largest-ever financing package IDA’s 61-year history was agreed over a two-day meeting hosted virtually by Japan.

It said that IDA’s unique leveraging model enables it to achieve greater value from donor resources – every $1 that donours contribute to IDA is now leveraged into almost $4 of financial support for the poorest countries. 

“Today’s generous commitment by our partners is a critical step toward supporting poor countries in their efforts to recover from the COVID-19 crisis,” said World Bank Group President David Malpass.

“We are grateful for the confidence our partners have in IDA as a non-fragmented and efficient platform to tackle development challenges and improve the lives of millions of people around the world,” David Malpass said.

The funds will be delivered to the world’s 74 poorest countries under the 20th replenishment (IDA20) programme, which focuses on helping countries recover from the impacts of the COVID-19 crisis.

A substantial portion of these funds go to tackling climate change, with a focus on helping countries to adapt to rising climate impacts and preserve biodiversity.