Joe Biden announces pledge of US$4 billion to replenish World Bank’s International Development Association
Brazil: In order to resupply the World Bank’s International Development Association, US President Joe Biden said that the US will provide USD 4 billion over the course of the next three years.
“I joined World Bank President Banga this week to announce the United States will pledge $4 billion over three years to the replenishment of IDA – the arm of the World Bank that supports vulnerable countries,” Biden said in a post on X. We urge others to increase their commitments in solidarity with us.
WATCH:
https://x.com/POTUS/status/1858966104472711515
The World Bank’s International Development Association (IDA) provides assistance to low-income nations. IDA was founded in 1960 to supplement the International Bank for Reconstruction and Development (IBRD), the World Bank’s initial lending arm.
According to the IDA’s website, its grants and low-interest loans enable nations to make investments in their futures and enhance people’s quality of life, which leads to the development of more successful communities.
One of the biggest providers of aid to the 78 low-income nations in the world, IDA is also the main source of donor funding for these nations’ essential social programs. IDA provides loans with favorable conditions. This indicates that the interest charged on IDA credits is nil or very low, and that the payback period is thirty to forty years.
The majority of IDA resources are given to more than half of IDA nations on grant terms, which have no return obligations whatsoever. These awards are intended for low-income nations that are more likely to experience financial difficulties. The governments of IDA’s member nations have traditionally provided the majority of its funding. Every three years, donors get together to assess IDA’s policy framework and restock its resources.
based on its webpage. After the twentieth (IDA20) replenishment of IDA’s resources was completed in December 2021, IDA nations received an unprecedented USD 93 billion financial package for fiscal years 2022–2025.
