Latest News

World Bank wins promises for $100 bln replenishment of fund for poorest countries

Donor countries have vowed a record $100 billion threeyear replenishment of the World Bank's fund for the poorest countries, offering an essential lifeline for their struggles against squashing debts, climate disasters, inflation and conflict.

The World Bank made the announcement early on Friday in Seoul at a vowing conference for the International Advancement Association, which provides grants and very low interest loans to some 78 low-income nations.

The overall exceeds the previous $93 billion IDA replenishment announced in December 2021. Nations will contribute about $24. billion straight to IDA, but the fund will release bonds and. utilize other financial utilize to extend that to the targeted. $ 100 billion in grants and loans through mid 2028.

However the two-day pledging conference fell short of the $120. billion goal that some developing countries had actually required,. partially due to the fact that the dollar's strength-- pushed up by. Donald Trump's U.S. governmental election victory-- decreased. the dollar worth of considerable increases in foreign currency. contributions by numerous nations.

At a G20 leaders' summit in Brazil last month, Norway. increased its promise by 50% from 2021 to 5.024 billion krone. That's $455 million at current currency exchange rate, but at the start. of 2024, it would have been worth $496 million.

South Korea improved its promise by 45% to 846 billion won,. ($ 597 billion), Britain by 40% to 1.8 billion pounds, while. Spain boosted its contribution to 400 million euros, a promise. worth $423 million-- $10 million less than the day it was. announced in October.

U.S. President Joe Biden promised a $4 billion U.S. contribution, up from $3.5 billion in the previous round.

(source: Reuters)