Record $100 Billion Aid Pledged by Donor Nations for Poorest Countries

Donor countries have pledged a record $100 billion to the World Bank's fund for the poorest nations. This provides crucial financial support to combat debt, climate disasters, and other challenges. Despite falling short of a $120 billion target, increased pledges from nations like Norway and South Korea significantly bolstered the fund.

In a historic move, donor countries have pledged a record $100 billion to the World Bank's fund aimed at assisting the world's poorest nations. This influx of capital offers a lifeline in the fight against overwhelming debt, environmental catastrophes, surging inflation, and ongoing conflicts.

The announcement was made at a pledging conference in Seoul for the International Development Association (IDA), which aims to provide grants and low-interest loans to about 78 low-income countries. The total surpasses the previous $93 billion pledged in December 2021, with countries contributing $24 billion directly to IDA.

Many countries increased their commitments, with Norway raising its pledge by 50%, South Korea by 45%, and the United Kingdom by 40%. However, the conference fell short of the $120 billion target due to currency fluctuations, notably influenced by the strong dollar following Donald Trump's election victory.

(With inputs from agencies.)