Washington (AFP) – A group of advanced economies have pledged $11 billion in new funding commitments to boost the World Bank’s lending capacity by up to $70 billion over a decade, the development lender announced Friday.
The 11 countries — including the United States, Germany and Japan — committed the funds to three lending instruments designed to increase capacity and allow the World Bank to take on “more risk for shared global challenges,” the bank said in a statement.
By leveraging the resources pledged, the bank should be able to provide up to $70 billion in new lending over a 10-year period.
“We worked hard to develop these new financial instruments that boost our lending capacity, multiply donor funds, and ultimately allow us to improve the lives of more people,” World Bank president Ajay Banga said in a statement. He added that the new commitments were “both an endorsement of the progress we have made to reform the bank, and a sign of their shared commitment to development globally.”
The bank has previously estimated that developing countries will need an average of $2.4 trillion each year between now and 2030 in order to address the “global challenges of climate change, conflict, and pandemics.”
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