World Bank Group’s $ 157 billion pandemic wave is biggest crisis response in history – World



In response to COVID-19 severely damaging the lives and livelihoods of millions of people in developing countries, the World Bank Group has deployed more than $ 157 billion to address the health, economic and social impacts of pandemic in the past 15 months (April 1, 2020 – June 30, 2021). This is the largest response to the crisis of such a period in the history of the Bank Group and represents an increase of over 60% from the 15-month period preceding the pandemic. Bank Group commitments and mobilizations for fiscal year 2021 (FY21) alone (July 1, 2020 – June 30, 2021) amounted to nearly $ 110 billion (or $ 84 billion excluding mobilization, short-term financing). and trust funds executed by beneficiaries).

Since the start of the pandemic, the Bank Group has helped countries cope with the health emergency, strengthen health systems, protect the poor and vulnerable, support businesses, create jobs and to launch a green, resilient and inclusive recovery.

Following last year’s COVID-related economic deterioration, the global economy is expected to grow 5.6% in 2021. The recovery so far has been uneven and many of the world’s poorest countries are left behind. for account. While about 90% of advanced economies are expected to return to their pre-pandemic per capita income levels by 2022, only about a third of emerging and developing market economies are expected to do the same. In 2020, global extreme poverty increased for the first time in more than 20 years, with nearly 100 million people living in extreme poverty.

“Since the start of the pandemic, the World Bank Group has committed or mobilized a record $ 157 billion in new financing, an unprecedented level of support for an unprecedented crisis,” mentionned World Bank Group President David Malpass. “We will continue to provide essential assistance to developing countries during this ongoing pandemic to help achieve a broader economic recovery. The Bank Group has proven to be a rapid, innovative and effective platform to support developing countries in their response to the pandemic and strengthen their resilience to future shocks. But we need to do more. I remain deeply concerned about the limited availability of vaccines for developing countries, which are essential to save lives and livelihoods. “

World Bank Group commitments

(in billions of US dollars)

World Bank Group

Q4-FY20

FY21 *

15 months ending June 21 *

BIRD

15.1

30.5

45.6

IDA

17.2

36.1

53.3

IFC

11.2

31.5

42.7

Long-term financing (own account)

4.9

12.5

17.4

Mobilization

4.1

10.8

14.9

Short-term funding

2.2

8.2

10.4

MIGA

2.4

5.2

7.6

Trust funds executed by beneficiaries (RETF)

1.5

6.4

7.9

TOTAL (excluding short-term financing, mobilization and RETF)

39.6

84.3

123.9

TOTAL (including short-term financing, mobilization and RETF)

47.4

109.7

157.1

* Preliminary and unaudited figures as of July 14.

In the 15 months ending June 30, 2021, the Bank Group stretched its balance sheets, accelerated leverage and disbursements, and accelerated its resources. Support to the countries of International Bank for Reconstruction and Development (IBRD) totaled $ 45.6 billion, including the drawdown of $ 10 billion from the IBRD crisis reserve in addition to the annual sustainable loan limits approved by the Board. Grants and loans at zero or low interest rates to the poorest countries in the world of International Development Association (IDA) was $ 53.3 billion. To meet the increased financing needs, the World Bank fully utilized all remaining IDA18 resources in FY20 and funded approximately half of IDA19’s three-year resource envelope in FY20. 21. In February 2021, representatives of IDA donor and borrower countries agreed to advance IDA20 by 12 months to allow the continuation of the surge financing in the years to come.

In addition, during the same 15 months, the International finance corporation (IFC), the private sector development arm of the Bank Group, reached a record level of $ 42.7 billion in financing, including short-term financing ($ 10.4 billion) and mobilization ($ 14.9 billion), of which 37% in low-income and fragile countries and conflict-affected states. IFC has provided liquidity for businesses to stay in business, while increasing investment in businesses on the front lines of the pandemic response. To address the increased trade deficit induced by COVID, IFC has expanded its trade finance and supply chain activities. IFC’s “upstream” work continues to create the conditions to attract much-needed private investment in some of the world’s toughest places and pave the way for a faster private sector recovery.

Despite a difficult year for borrowers and financial markets, IDA doubled the amount it raised from investors last year to nearly $ 10 billion. IBRD has raised $ 68 billion by leveraging finance from investors around the world. IBRD and IDA, both rated AAA / Aaa, have raised awareness on various development themes in order to successfully mobilize finance for sustainable development. The year also included innovations such as a one-time, five-year, $ 100 million bond issued by IBRD to support the global response to COVID-19 through UNICEF. IFC, also rated AAA / Aaa, has issued nearly $ 13 billion in bonds for private sector development and job creation in emerging markets.

the Multilateral Investment Guarantee Agency (MIGA), whose mandate is to generate impactful foreign direct investment in developing countries, issued $ 7.6 billion in new guarantees in the same 15-month period since the start of the pandemic, of which 19% supported projects in IDA countries and fragile environments.

In fiscal year 21, World Bank Group climate finance totaled over $ 26 billion, the largest year of climate finance ever (25% over fiscal year 20, which was also a record). New Climate change action plan for 2021-2025 aims to integrate climate and development objectives, and commits 35% of Bank Group climate finance, on average, over the next five years, with at least 50% of climate finance from the World Bank supporting adaptation. At the same time, the Bank Group will align funding with the objectives of the Paris Agreement, while helping client countries meet their Paris commitments, in particular by supporting and implementing the development of their determined contributions. at the national level (NDC) and their long-term strategies.

PRESS RELEASE N °: 2022/001 / EXC

Contacts

in Washington

David Théis
(202) 458-8626
[email protected]

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David W. Young
(202) 473-4691
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