The World Bank has committed a record 100 billion US dollar (550 milliarder DKR) in financial support over the past 18 months to help developing countries recover from the global economic crisis, the poverty-fighting institution said on Wednesday.
The Bank stepped up lending in July 2008 at the request of member countries as demand from developing countries increased in the face of a worsening world recession and sharp drop in global trade.
Since July 2008, the World Bank has supported 497 projects to promote economic growth, fight poverty, and support the private sector, including 28 billion dollar in infrastructure financing, the institution said in a statement.
Commitments to shore up troubled financial sectors also increased as banks in emerging and developing countries faced credit strains.
The commitments include loans, subsidies, grants, private-sector investments and financial services that were stepped up to help coun-tries respond to and recover from the worst economic slump in 50 years, the anti-poverty development lender said.
“As the multi-speed recovery takes shape around the world, countries will face recurring and new challenges, and the World Bank will continue to provide support to overcome poverty and foster sustainable growth”, World Bank president Robert Zoellick said in the statement.
The Bank stated that it is playing a historically large role in protecting the poor and laying the foundation of recovery.
World Bank commitments supporting social safety net programs for the poorest and most vulnerable citizens in the poorest countries increased exponentially from 253 million dollar in fiscal year 2008 to 3,1 billion dollar in fiscal year 2009 and to 2,1 billion to date this year.
Meanwhile, a Bank official said Wednesday, that World Bank loans to Latin America will near 15 billion dollar in fiscal 2010 and dip to 7 to 10 billion in 2011 as countries see less demand and look to diversify finance.
Economic growth in the region should be 3,5 percent to 4 percent this year and 4 percent to 5 percent next year, closely tied to commodity prices and trade, Pamela Cox, World Bank vice president for Latin America and the Caribbean, noted.
Kilde: www.worldbank.org
