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The World Bank reported that it has gathered almost $24 billion to give grants and loans to some of the world’s poorest countries, which it can use to increase its overall spending power to a record $100 billion.

According to a World Bank official who spoke to AFP, donor nations donated $23.7 billion to restock the bank’s concessional lending arm through the International Development Association (IDA), a modest rise over the approximately $23.5 billion promised during the previous fundraising round three years prior.

The bank can leverage the funds obtained by almost four times by borrowing on financial markets, which will enable it to access approximately $100 billion in new loans and grants, up from $93 billion in 2021.

Regarding the current IDA financing round, the World Bank said in a statement that they thought the unprecedented success of this IDA21 replenishment was a testament to the trust and support of donors and customers.

The money will be used to help the 78 countries that need it the most, according to a separate statement from World Bank President Ajay Banga. These are the developing nations that qualify for IDA assistance.

He said, “It will help provide resources to invest in health, education, infrastructure, and climate resilience, as well as helping to stabilize economies and create jobs.”

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According to the statement, the World Bank made its announcement after two days of negotiations in Seoul, the capital of South Korea, which is still in shock over President Yoon Suk Yeol’s declaration of martial law late on Tuesday local time and subsequent retraction in response to pressure from parliament.

Nowadays, the International Development Association (IDA) is the main supplier of concessional,

or below-market, climate finance, and the World Bank estimates that about two-thirds of all IDA funding over the previous ten years has been used to assist African nations.

One of the most important aspects of the bank’s operations is its replenishment, which takes place once every three years and is largely funded by the US, Japan, and a number of European nations, notably the UK, Germany, and France.

According to the statement, the United States made an advance announcement this year that it would provide a record $4 billion in additional money to the IDA, while other nations, such as Norway and Spain, also greatly increased their financial contributions.

China, Turkey, and South Korea are among the 35 former IDA recipients who have transitioned from developing economy classification in recent decades; many of them are now fund providers.

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