Record $100 Billion Pledged for World Bank Fund

By David Lawder
WASHINGTON (Reuters) – Donor countries have pledged a record $100 billion three-year replenishment of the World Bank's fund for the poorest nations, providing a vital lifeline for their struggles against crushing debts, climate disasters, inflation, and conflict.

The World Bank made the announcement early on Friday in Seoul at a pledging conference for the International Development Association (IDA), which provides grants and very low interest loans to some 78 low-income countries.

The total exceeds the previous $93 billion IDA replenishment announced in December 2021. Countries will contribute about $24 billion directly to IDA, but the fund will issue bonds and employ other financial leverage to stretch 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 objective that some developing countries had called for, partly due to the dollar's strength—prompted by Donald Trump's U.S. presidential election victory—diminishing the dollar value of significant increases in foreign currency contributions by several countries.

At a G20 leaders' summit in Brazil last month, Norway increased its pledge by 50% from 2021 to 5.024 billion krone (about $455 million), but by early 2024, it would have been valued at $496 million.

South Korea boosted its pledge by 45% to 846 billion won (approximately $597 million), Britain by 40% to 1.8 billion pounds, while Spain increased its contribution to 400 million euros, valued at $423 million—$10 million less than on the day it was announced in October.

U.S. President Joe Biden pledged a $4 billion U.S. contribution, an increase from $3.5 billion in the previous round.