Share

World Bank: $52bn pledged to help poorest

Washington - Rich and emerging-market nations agreed to commit a record $52 billion over three years to a World Bank fund to aid the world's poorest countries, the bank said on Tuesday.

The figure marks an increase of about 5 percent from the last time the International Development Association, or IDA, was topped up in 2010.

"The fact that this generosity came during a very difficult economic period makes this pledge all the more significant," World Bank President Jim Yong Kim told reporters on a call.

But for the first time, some of the money will be given in the form of low-interest loans, not grants, totaling just over $4 billion.

The World Bank, a global development lender based in Washington, said the loans allow countries to increase their contributions to IDA in a tough economic environment, and amid strong demand for the funds.

Kim said the overall total is still an increase compared with prior years, even accounting for the loans and inflation.

"We are absolutely delighted, because this represents a real increase," he said.

Oxfam, an advocacy and development group, welcomed the renewed pledges, but said the concessional loans should be avoided in the future.

"Oxfam cautions that while this approach is acceptable in a context of economic crisis, it should be a temporary fix and not a permanent way of operating," the group said in a statement.

Forty-six countries contributed to IDA in the latest round of replenishment, compared with 51 last time. The World Bank said more countries may choose to add funds in the next few weeks, though it could not share exact contributions until March, after the bank's board signs off on the figures.

The United States, Japan and Britain are typically the top three donors to the fund.

IDA is the world's largest fund for the poorest countries, many of them in Africa. It offers grants and interest-free loans for such basic purposes as providing clean water, improved sanitation, education and better infant and maternal care to the world's neediest.

It is replenished with new money or pledges of money at three-year intervals.

The World Bank said the money in the latest round will be especially focused on helping countries in conflict areas, mobilizing the private sector, and investments in climate change and gender equality.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders