Denmark Pledges $491.7 Million to Boost World Bank's Fund for Poorest Countries

Denmark has pledged approximately $491.7 million to the World Bank's International Development Association (IDA), marking a 40% increase over its previous contribution. This commitment aims to support the IDA's goal of raising over $100 billion by December, amidst tight fiscal conditions globally.

Denmark has announced a pledge of approximately $491.7 million to the World Bank's International Development Association (IDA), marking a significant 40% increase over its previous contribution. The announcement came during the United Nations General Assembly in New York.

The World Bank aims to secure a record replenishment for the IDA by December, topping the previous $93 billion fund from December 2021. However, efforts to surpass the $100 billion target are facing challenges due to tight fiscal resources, as wealthier nations are reducing spending amidst slower recoveries from the COVID-19 pandemic. Denmark's pledge represents a substantial commitment toward meeting rising financing needs in debt-strapped low-income countries.

World Bank President Ajay Banga emphasized the impact of Denmark's donation, noting that every dollar raised by the IDA can be multiplied fourfold through the bank's borrowing capacity. Danish Prime Minister Mette Frederiksen reiterated Denmark's dedication to achieving the Sustainable Development Goals and the Paris Climate Agreement, highlighting their commitment to responding to funding calls from African partners.

(With inputs from agencies.)