“This is an important step that we hope others can follow to bolster much-needed financing to fight poverty and inequality,” Cuerpo said in a statement, adding that it shows Spain’s “belief in IDA’s ability to move the needle” for low-income country development.
World Bank President Ajay Banga is aiming for IDA’s latest pledge drive, which occurs every three years, to exceed the $93 billion replenishment in December 2021. Banga told Reuters last week that a $120 billion replenishment is possible, but would require some substantial increases in country commitments.
The World Bank said that to free up resources for vulnerable economies, Spain also has added contingency clauses to its official loans that give countries the option to pause debt service payments in the event of natural disasters and food or health crises.
(Reporting by David Lawder; Editing by Paul Simao)