WASHINGTON - The World Bank Group said on Monday that Denmark has pledged to contribute about $491.7 million to the bank's latest replenishment of its fund for the poorest countries, a 40% increase over the country's previous contribution.
WHY IT'S IMPORTANT
The World Bank Group is aiming to close a record replenishment of the International Development Association's funding by December, topping the previous $93 billion replenishment in December 2021. But the campaign to raise over $100 billion comes at a time of tight fiscal resources as many wealthier countries pare back spending as their recoveries from COVID-19 slow.
Denmark's pledge of 3.3 billion kroner , announced at the United Nations General Assembly in New York, represents a major commitment to development and progress toward the goal as financing needs are rising in debt-strapped low-income countries.
The World Bank also called it a "deliverable" to African leaders, who have called for an ambitious IDA funding increase.
KEY QUOTES:
"We all want a more prosperous and equitable world. This financial commitment signifies Denmark's resolve and dedication in achieving the Sustainable Development Goals and the Paris Climate Agreement. I am proud to answer the call from our African partners for more funding," Danish Prime Minister Mette Frederiksen said a statement released by the World Bank. "We urge other countries to join forces with us."
World Bank President Ajay Banga said the donation will have a "tangible impact on people's lives," adding that every dollar raised by IDA can be multiplied by four times through the bank's own borrowing capacity.
{{/usCountry}}World Bank President Ajay Banga said the donation will have a "tangible impact on people's lives," adding that every dollar raised by IDA can be multiplied by four times through the bank's own borrowing capacity.
{{/usCountry}}"It's the best deal in development," Banga said of IDA.
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