Rio de Janeiro
US President Joe Biden has announced a pledge of $4 billion over the next three years to replenish the World Bank’s International Development Association (IDA), a key financial arm that supports low-income countries. Biden made the announcement alongside World Bank President Ajay Banga on Tuesday night, urging other countries to join in increasing their contributions.
The IDA, established in 1960, provides grants and low-interest loans to 78 of the world’s poorest nations, helping them invest in critical areas such as health, education, and infrastructure. These concessional loans come with zero or very low interest rates, and repayments can stretch over several decades. The US pledge aims to continue supporting these vulnerable countries and foster sustainable development.
IDA funding is crucial for addressing global poverty and providing essential social services in countries at risk of debt distress. The last replenishment, IDA20, concluded in December 2021, with a historic $93 billion financing package for the period 2022-2025. This latest commitment by the US underscores its continued leadership in supporting global development efforts.
