Britain pledges US$2.5 billion to World Bank fund for poor nations
Three Great Britain flags (Rodion Kutsaiev / Pexels.com)
LONDON -
Britain on Thursday pledged to invest 1.98 billion pounds (US$2.5 billion) over three years into the World Bank's International Development Association (IDA) fund for the lowest-income countries.
The investment will fund projects promoting economic growth, tackling poverty and addressing the impacts of climate change, the government said in a statement.
The IDA fund, which mainly provides grants and very low interest loans to the poorest countries, is replenished every three years, and a pledging conference is scheduled for Dec. 5-6 in Seoul.
World Bank President Ajay Banga is aiming for a record amount exceeding the $93 billion refunding in December 2021, amid rising demands from poor nations that are struggling with crushing debts, climate disasters, conflict and other pressures.
U.S. President Joe Biden pledged a $4 billion U.S. contribution to the IDA fund last week.
Britain used to devote 0.7% of its gross national income to overseas development aid, but the previous Conservative government cut that level to 0.5% in 2021 due to the impact of the COVID-19 pandemic.
Prime Minister Keir Starmer's Labour government, in office since July, has pledged to restore the aid budget to the previous level but has not set a timeline for it.
(Reporting by Catarina Demony; Editing by Sachin Ravikumar)
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