The International Development Association, the concessional arm of the World Bank which offers grants and low-interest loans to the world’s 75 lowest-income countries, is currently developing its policy and financial package for its latest round of funding, known as IDA21, set to conclude in December.
Its last replenishment, finalised in December 2021, saw a historic $93bn financing package for IDA countries across fiscal years 2022-2025. Now, IDA21 requires a “very large, very robust” replenishment given the lingering effects of the Covid-19 pandemic and the intensifying impact of climate change, as well as food insecurity and debt, Akihiko Nishio, vice-president of development finance at the World Bank, tells The Banker.
