Washington, D.C, October 24, 2024 - Spain has announced an early financial commitment of €400 million to the International Development Association, the World Bank's fund for low-income countries. This is a 37% increase compared to the previous IDA replenishment cycle and underscores Spain's continued commitment to sustainable development worldwide. This raises Spain's total contribution to over €5 billion since IDA's creation.
The announcement was made on the sidelines of the World Bank Group-IMF Annual Meetings and comes weeks ahead of the final 21st replenishment (IDA21) meeting in December. It also comes at a time of multiple crises that are taking a disproportionate toll on low-income countries. As a new World Bank report shows, the world's 26 poorest countries, home to 40% of the most poverty-stricken people, are more in debt than at any time since 2006 and increasingly vulnerable 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 an effort to free up resources to vulnerable economies, Spain added contingency clauses to its official loans earlier this year. The clauses give countries the option to pause debt service payments in cases of natural disasters, food or health crises. Cuerpo has urged other developed countries to adopt similar pause clauses ahead of the United Nations´ 4th International Financing for Development Conference next year in Seville, Spain.
The year-long IDA21 replenishment process culminates in December with a final pledging meeting in Seoul. The most recent replenishment, IDA20, yielded a $93 billion package to finance projects that boost economic growth, build resilience, and improve lives in developing countries.
