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Aid to region at a record high, says World Bank
CMC
Friday, July 03, 2009
WASHINGTON, USA (CMC) - The World Bank says its aid to Caribbean and Latin American countries is at an all-time high.
The Washington-based financial institution said Wednesday that it had committed US$17.1 billion in fiscal year 2009 to help regional countries struggling amid the global economic crisis.
It said that figure represents a 70 per cent increase over the previous fiscal year and a record high for the global development institution in the region.
"Requests for assistance from the World Bank Group rose sharply this year, and we expect this to continue well into 2010, as the pace of recovery is far from certain," said World Bank Group President Robert B Zoellick.
"Millions of people are still suffering, and we must continue to help countries safeguard priority expenditures, including on essential infrastructure, investment in human capital, and social safety nets; or we will further jeopardise hard-fought gains over recent years in overcoming poverty," he added.
The World Bank said it devoted "significant energy and resources" in fiscal year 2009 in responding to the needs of countries hit by the global financial crisis, "with a strong focus on initiatives to protect the most vulnerable in the poorest countries; maintain long-term infrastructure investment programmes; and sustain the potential for private sector-led economic growth and employment creation."
The bank said commitments to the Caribbean and Latin America from its International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) more than tripled in fiscal year 2009 to US$14 billion for 64 operations, up from US$4.7 billion the previous year.
The IBRD provides financing, risk management products, and other financial services to countries; and IDA provides interest-free loans and grants to the world's poorest countries.
The World Bank said support to the region represents almost a third of total IBRD/IDA lending (30 per cent) and 42 per cent of total IBRD lending.
The bank also said fast-disbursing Development Policy Loans, providing critical budget support at a time of rising financing gaps, comprised 51 per cent of IBRD/IDA lending.
"A key factor that enabled the Bank to respond quickly was the ability to draw on knowledge previously built up in a wide range of sectors," the World Bank said, adding that support from IBRD/IDA focused on key areas, such as social protection, environment and economic policy.
The World Bank also said its International Finance Corporation (IFC), which supports sustainable private sector development through financing and advisory services, doubled in fiscal year 2009 the number of investments in the region, supporting 122 projects in 21 countries, including six IDA, with a contribution of US$3.3 billion, of which US$775 million were in syndicated loans.
In addition, the bank said the IFC supported 68 advisory services projects to help improve business environment, promote access to finance for underserved segments and enhance the benefits of private sector projects in local communities.
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