Finland allocates EUR 125 million to support the world’s poorest countries

NordenBladet — Finland will contribute EUR 125 million to the replenishment of the International Development Association (IDA), which is part of the World Bank Group. The replenishment process was brought forward to help the world’s poorest countries affected by the COVID-19 pandemic.All most 50 officials from donor governments (IDA Deputies) and representatives of developing countries have reached agreement on the replenishment of the International Development Association (IDA) for 2022–2025. The IDA Deputies’ total funding amounts to approximately USD 93 billion, of which development cooperation funds account for about USD 24 billion. The rest of the financing package consists of developing countries’ repayments of previous loans, as well as market financing. IDA, which is part of the World Bank Group, gives concessional loans and grants to the poorest developing countries. It promotes sustainable development and the reduction of poverty and inequality worldwide. IDA focuses on the rights and position of women and girls and persons with disabilities, as well as on combating climate change and adapting to it. IDA also supports job creation, livelihoods and better wellbeing in developing countries as well as stronger governance and tax collection capacity.“IDA is a multilateral financial institution, through which Finland can influence the content of a significant development funding package. In the negotiations, Finland has emphasised mitigation of and adaptation to climate change and questions related to equality and disability,” says Minister for Development Cooperation and Foreign Trade Ville Skinnari.Donors meet every three years to agree on the replenishment of IDA resources. Due to the COVID-19 pandemic, the new replenishment process was brought forward by one year to support developing countries affected by the pandemic. In the previous replenishment, Finland supported IDA by EUR 114 million, which means that the grant element pledged by Finland will increase by about 10 per cent.

Source: Valtioneuvosto.fi