World Bank pledges record $ 3.5 bn to aid poorest nations
The World Bank pledged a record $ 3.5 billion to aid the world's poorest countries as it cut the interest rate on loans to big developing countries.
By Agencies |
WASHINGTON: The World Bank pledged a record $ 3.5 billion to aid the world's poorest countries as it cut the interest rate on loans to big developing countries.
The roughly quarter-point lowering of loan rates was a concession by the World Bank as it stepped up efforts to get some of the big borrowers such as China and Brazil to contribute to poverty-fighting efforts.
The bank yesterday said it was seeking to contribute more than double the $ 1.5 billion it had pledged two years ago to the International Development Association (IDA), its arm which provides interest-free loans and grants to the poorest countries.
"By boosting its IDA pledge by over 100 per cent, the World Bank Group is putting its money where its mouth is," said Robert Zoellick, the World Bank president.
"This should help us gain momentum as we urge donor countries to increase their commitment to help the 81 poorest countries, especially in Africa, through an ambitious IDA 15 replenishment," he said in a statement. Zoellick cited the example of South Africa, which had already pledged an increase of over 30 per cent to support IDA.
The World Bank said its board of executive directors also took "a second important step" yesterday: approval of the biggest simplification and reduction in loan charges in nine years for the International Bank for Reconstruction and Development (IBRD), another Bank affiliate. The move affects 79 creditworthy low- and middle-income countries clients and shareholders of the IBRD and takes the controversial loan rates to levels last seen in 1998, before rates were raised in the aftermath of the Asian financial crisis.
The roughly quarter-point lowering of loan rates was a concession by the World Bank as it stepped up efforts to get some of the big borrowers such as China and Brazil to contribute to poverty-fighting efforts.
The bank yesterday said it was seeking to contribute more than double the $ 1.5 billion it had pledged two years ago to the International Development Association (IDA), its arm which provides interest-free loans and grants to the poorest countries.
"By boosting its IDA pledge by over 100 per cent, the World Bank Group is putting its money where its mouth is," said Robert Zoellick, the World Bank president.
"This should help us gain momentum as we urge donor countries to increase their commitment to help the 81 poorest countries, especially in Africa, through an ambitious IDA 15 replenishment," he said in a statement. Zoellick cited the example of South Africa, which had already pledged an increase of over 30 per cent to support IDA.
The World Bank said its board of executive directors also took "a second important step" yesterday: approval of the biggest simplification and reduction in loan charges in nine years for the International Bank for Reconstruction and Development (IBRD), another Bank affiliate. The move affects 79 creditworthy low- and middle-income countries clients and shareholders of the IBRD and takes the controversial loan rates to levels last seen in 1998, before rates were raised in the aftermath of the Asian financial crisis.
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