The World Bank’s fund for the planet’s poorest nations is advocating for record funding to address the escalating challenges of debt and climate crises.
Mr. Dirk Reinermann, head of resource mobilisation at the bank, has emphasised the urgent need for the International Development Association, IDA, to secure what he says is its most substantial replenishment ever in financial resources.
This replenishment is crucial to facilitate the provision of affordable loans and grants to 75 developing countries.
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According to a Financial Times report, IDA raised $23.5 billion from donor countries in 2021, in the last round of fundraising. That sum was raised to $93 billion after tapping capital markets.
IDA, which has $235 billion of total assets, is seen by governments and policy groups as one of the most effective aid providers in the global fight against poverty, both because it can leverage capital markets to triple its annual windfall and give those funds to poor countries at concessional or marginal rates.
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