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The International Development Organization says the amount will go to support the 78 countries most in need.
The World Bank has announced that it has raised nearly $24 billion in loans and grants to some of the world’s poorest countries, which it can use to generate a record $100 billion in aggregate purchasing power.
Donor countries pledged $23.7 billion to top up the bank’s concessional lending arm, known as the International Development Association (IDA), a World Bank spokesman told AFP, marking a slight increase from the roughly $23.5 billion pledged in the last fundraising round in three years. before.
The bank can use that money to borrow in financial markets, allowing it to raise about four times the amount it has raised, raising about $100 billion in new loans and grants, up from $93 billion in 2021.
“We believe the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients,” the World Bank said in a statement, referring to the current IDA funding round.
“This funding will be used to support the 78 countries most in need,” World Bank President Ajay Banga said in a separate statement, referring to developing countries eligible for IDA support.
He added that this would help provide “resources to invest in health, education, infrastructure and climate resilience”, as well as help stabilize the economy and create jobs.
The World Bank’s announcement followed two days of talks in the South Korean capital of Seoul, a city still reeling after President Yong Suk-yeol declared martial law late Tuesday local time, then stepped down under pressure from lawmakers.
According to the World Bank, an international development organization, IDA has become the single largest source of concessional, or below-market, climate change finance, with about two-thirds of all IDA funding going to support African countries over the past decade. 187 countries.
The IDA top-up is a vital part of the bank’s operations and takes place every three years, with much of the funding coming from the US, Japan and several European countries, including the UK, Germany and France.
This year, the United States announced early on that it would provide a record $4 billion in funding to the IDA, while other countries, including Norway and Spain, also significantly increased their financial support.
Thirty-five former IDA beneficiaries have achieved developing economy status in recent decades, including China, Turkey and South Korea, and many of them are now donors to the fund.
