OAN Staff Brooke Mallory
5:11 PM – Wednesday, November 20, 2024

In order to “replenish” the World Bank’s International Development Association, U.S. President Joe Biden announced that the U.S. will contribute $4 billion over the course of the following three years.

 

“This week I joined World Bank President Banga to announce the United States will pledge $4 billion over 3 years to the replenishment of IDA—the arm of the World Bank that supports vulnerable countries. We ask that others join us in stepping up their pledges,” Biden posted on X (Twitter).

The World Bank’s International Development Association (IDA) provides assistance to “vulnerable” low-income nations. IDA was founded in 1960 to supplement the International Bank for Reconstruction and Development (IBRD), the World Bank’s initial lending arm.

According to the IDA’s website, its grants and low-interest loans enable nations to make investments, which supporters say enhances people’s quality of life globally.

As one of the largest sources of assistance to the 78 lowest-income nations in the world, IDA is also the main source of donor funding for these nations’ essential social programs.

IDA provides loans with “favorable conditions,” it claims. This indicates that the interest charged on IDA credits is nil or extremely low, and that the repayment period is thirty to forty years.

The majority of IDA resources are given to more than half of IDA nations on grant terms, which have no return obligations whatsoever. These awards are intended for low-income nations that are more likely to experience financial difficulties. The governments of IDA’s member nations have traditionally provided the majority of its funding. Every three years, donors get together to assess IDA’s policy framework and restock its resources.

Its website also states that in December 2021, the twentieth (IDA20) replenishment of IDA’s resources were finalized, resulting in an unprecedented $93 billion finance package from the U.S. for IDA nations for fiscal years 2022–2025.

Social media users commented on the revelation after seeing Biden’s X post.

“In case you missed it, yesterday Biden pledged 4 billion dollars to the World Bank. The same world bank that back in October reported that they misplaced 24 billion dollars earmarked for climate change,” said one user on X.