Major donors expected to increase IDA funding pledges, World Bank says
2:51 pm Monday, October 28th, 2024
By Karin Strohecker
WASHINGTON (Reuters) – The World Bank is expecting major donors to raise their pledges to its fund for low-income countries, said Axel van Trotsenburg, the Washington-based lender’s senior managing director.
The replenishment cycle of the International Development Association (IDA) – occurring every three years – is currently underway and scheduled to culminate in the Dec. 6 pledging conference in South Korea.
“My plea is always be as generous as possible, stretch yourself,” van Trotsenburg said in an interview on the sidelines of the International Monetary Fund and World Bank meetings in Washington last week. Asked about the $120 billion target floated by African leaders earlier this year, he said this was one possible scenario, but “certainly a higher one.”
World Bank President Ajay Banga said earlier in October that a $120 billion replenishment was possible, but would require substantial increases in individual countries’ commitments.
The last IDA replenishment in 2021 saw donors add $93 billion to the fund which extends grants and low-interest loans to some of the poorest countries in the world.
On Friday, Latvia became the third country to pledge last week after Spain and Denmark published their planned contributions earlier. Latvia’s 9.5 million euro ($10.3 million)pledge was an increase of 60% over previous contributions to the fund. Spain pledged 400 million euros ($433 million) in a 37% increase on Thursday, while Denmark also announced a 40% raise to 3.3 billion kroner ($478.4 million) during the United Nations General Assembly in New York in September.
($1 = 0.9249 euros)
($1 = 6.8986 Danish crowns)
(Reporting by Karin Strohecker; Editing by Andrea Ricci)
