WB announces $93 billion in donations to Bangladesh, other countries

The World Bank today announced a $93 billion replenishment package of the International Development Association (IDA) to help low-income countries, including Bangladesh. 

This fund will help countries respond to the Covid-19 crisis and build a greener, more resilient, and inclusive future.

The financing has brought together $23.5 billion of contributions from 48 high- and middle-income countries with financing raised in the capital markets, repayments, and the World Bank's own contributions, reads a World Bank press release.

The financing package, agreed over a two-day meeting hosted virtually by Japan, is the largest ever mobilized in IDA's 61-year history.

The funds will be delivered to the world's 74 poorest countries under the 20th replenishment (IDA20) program.

In these countries, the ongoing pandemic is worsening poverty, undermining growth, and jeopardizing the prospects of a resilient and inclusive development, added the statement.

Countries are struggling with falling government revenues; increasing debt vulnerabilities; rising risks to fragility, conflict, and instability; and dropping literacy rates. About a third of IDA countries are facing a looming food crisis. 

Due to the urgent development needs of IDA countries, the replenishment was advanced by one year. IDA20 will cover the period of 1 July 2022, to 30 June 2025.

The IDA20 policy architecture builds on the strong foundation of IDA19, with enhancements to make IDA20 even more ambitious and fit for today's challenges.

IDA will also deepen support to countries to better prepare for future crises, including pandemics, financial shocks, and natural hazards.

IDA's unique leveraging model enables it to achieve greater value from donor resources – every $1 that donors contribute to IDA is now leveraged into almost $4 of financial support for the poorest countries, reads the release.

"Today's generous commitment by our partners is a critical step toward supporting poor countries in their efforts to recover from the Covid-19 crisis," said World Bank Group President David Malpass.

"We are grateful for the confidence our partners have in IDA as a non-fragmented and efficient platform to tackle development challenges and improve the lives of millions of people around the world", he added.