$17 Billion in Concessional Loans and Grants Extended to Ghana, 3 Other African Countries in 3 Years – World Bank Says

The World Bank has extended $17 billion in financial support to Ghana, Chad, Ethiopia, and Zambia, all of which are part of the G20 Common Framework for Debt Treatments.

The funds, distributed via the International Development Association (IDA), are composed of equal parts concessional loans and grants, according to World Bank President Ajay Banga.

Without this assistance, Mr Banga noted, these countries would have faced acute financial hardship.

Speaking at the opening of the October 2024 Annual Meetings of the IMF and World Bank, Mr Banga underscored that the World Bank has been the one of the major sources of external financing for these nations over the past three years.

“We’ve given them $17 billion, about half in concessional loans and half in grants. Without that, they would be under severe stress and have no lifeline,” he said.

The World Bank is now aiming to raise an additional $100 billion from wealthier donor nations to further bolster IDA’s capacity.

Denmark has already announced a 40% increase in its allocation, while the UK and Spain are expected to follow suit with substantial contributions.

However, countries such as France, Germany, and Japan face fiscal and political challenges amid currency depreciation pressures that could limit their ability to raise funding commitments.

The $100bn funds are part of a broader effort by the World Bank to support heavily indebted low-income countries navigating the G20’s Common Framework, which seeks to address debt vulnerabilities in an era of rising global borrowing costs.

Source:norvanreports.com