Spain has announced an early financial commitment of €400 million to the International Development Association (IDA), the World Bank's fund for low-income countries. This represents a 37% increase compared to the previous IDA replenishment cycle, highlighting Spain's ongoing dedication to sustainable development worldwide. With this contribution, Spain's total donations exceed €5 billion since IDA's inception.
The announcement was made during the World Bank Group-IMF Annual Meetings and precedes the final 21st replenishment (IDA21) meeting scheduled for December. This comes amid multiple crises affecting low-income countries disproportionately. A new World Bank report indicates that the world's 26 poorest countries are more indebted now than at any time since 2006 and face increased vulnerability to natural disasters and other shocks.
"This is an important step that we hope others can follow to bolster much-needed financing to fight poverty and inequality," said Carlos Cuerpo, Spain’s Minister of Economy, Trade and Business. "This commitment exemplifies Spain's resolve and dedication to achieving the Sustainable Development Goals, and our belief in IDA’s ability to move the needle."
"IDA is a critical partner for the countries most in need, wielding powerful weapons against poverty: affordable financing and development knowledge," said World Bank Group President Ajay Banga. "Spain’s commitment will help IDA continue its work to breed stability, security, investment opportunities, trading potential, and jobs."
In efforts to support vulnerable economies further, Spain added contingency clauses to its official loans earlier this year. These clauses allow countries to pause debt service payments during natural disasters or food or health crises. Cuerpo has encouraged other developed nations to adopt similar measures ahead of next year's United Nations' 4th International Financing for Development Conference in Seville, Spain.
The year-long IDA21 replenishment process concludes in December with a final pledging meeting in Seoul. The previous replenishment, IDA20, resulted in a $93 billion package aimed at financing projects that promote economic growth, resilience building, and life improvements in developing nations.
For media inquiries:
In Washington: Meriem Gray (mgray@worlbank.org), Laure Lepastier (llepastier@worldbankgroup.org)
Alonso Soto (alonso.soto@economia.gob.es)
More information: https://ida.worldbank.org/en/replenishments/road-to-IDA21
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