The World Bank Group has committed $84.3 billion more to boosting Nigeria and other member-countries’ health systems, protecting the poor and vulnerable and supporting jobs and businesses , the bank’s the audited financial statements for fiscal year 2021 has shown.
The results, approved by the Executive Boards of the World Bank Group covers the fiscal year 2021 (July 1, 2020 – June 30, 2021).
The bank explained that the commitments was in response to the global outbreak of Covid-19, and represents 15 per cent higher than financial year 2020 expenditure.
The 2021 commitments stood at $562 billion, higher than $478 billion achieved in the preceding year.
The statements highlighted the strength of the financial position of the World Bank Group entities, strong demand for financing from our client countries, including due to COVID-19 and increased poverty, and the continued backing from shareholders and capital markets.
A significant portion of the financial year 2021 commitments supported measures related to the health and economic impacts of COVID-19.
The World Bank Group’s support in 2021 included $4.7 billion of newly approved financing for vaccines benefiting 54 countries.
Despite the high level of business activity, the World Bank Group continued to maintain fiscal prudence, with a reduction in gross administrative expenses in financial year 2021 compared to 2020.
“World Bank Group support to client countries surged to $157 billion over the last 15 months to address increased poverty, inequality, and the impacts of COVID-19,” said World Bank Group President David Malpass.
“This unprecedented level of commitments helped countries strengthen health systems, protect the poor and vulnerable, support jobs and businesses, promote economic growth, and lay the foundation for a green, resilient and inclusive recovery.”
Also now available are the Management’s Discussion and Analysis of financial results for the four World Bank Group institutions: the International Bank for Reconstruction and Development (IBRD), which provides loans and advice to middle-income countries; the International Development Association (IDA), the World Bank’s fund for the poorest; the International Finance Corporation (IFC), the Bank Group’s private sector arm; and the Multilateral Investment Guarantee Agency (MIGA), whose mandate is to help drive impactful foreign direct investment to developing countries.
The report said IBRD’s net commitments increased nine per cent to $30.5 billion in financial year and gross disbursements increased 17 per cent to $23.7 billion. Commitments to lower-middle-income countries in financial year 2021 represented 42 per cent of the total.
In financial year 2021, IDA net commitments were $36.0 billion, 19 per cent higher than the previous year.
Net disbursements in financial year were $16.5 billion, a nine per cent increase compared to the previous year, increasing the net outstanding loan balance to $177.8 billion, a 10 per cent increase over financial year 2020.
Also, long-term finance commitments increased to a record $23.3 billion, of which $12.5 billion was for IFC’s own account and $10.8 billion for core mobilization. Additionally, IFC delivered a record high of $8.2 billion in short-term finance, a 26 percent increase compared to the previous year.
