Latvia Pledges 60% financial increase to IDA21 in a record early financial commitment

Washington, D.C., October 24, 2024 - Latvia has announced a record early financial commitment to the International Development Association (IDA), the World Bank's fund for low-income countries. This pledge of 9,48 million euro represents a 60% increase over Latvia's previous contribution to IDA and reinforces the country's dedication to advancing sustainable development and global resilience.

The announcement was made on the sidelines of the World Bank Group-IMF Annual Meetings, just weeks before the final 21st replenishment (IDA21) meeting in December. This commitment arrives at a time as multiple global crises disproportionately affect low-income countries. A recent World Bank reporthighlights that the 26 poorest nations-home to 40% of the world's most poverty-stricken population-face unprecedented debt levels and heightened vulnerability to natural disasters and other external shocks.

"I agree with World Bank Group President Banga that IDA is the best deal in development," said Arvils Ašeradens, Minister for Finance of the Republic of Latvia. "This is the best way we can help the world's poorest. As Finance Minister of the Republic of Latvia, I am proud to announce that Latvia's contribution to IDA21 will increase by 60% compared to our previous replenishment. Together we can achieve a better and bigger IDA."

"IDA is the largest source of concessional financing for low-income countries-for some countries, it is the only source, making it a true lifeline for those most in need," said Aki Nishio, World Bank Group Vice President for Development Finance. "Latvia's commitment to IDA exemplifies the country's dedication to solidarity and shared prosperity."

In December, a final pledging meeting will take place in Seoul, South Korea, marking the end of the year-long IDA21 replenishment process. The previous replenishment, IDA20, yielded a $93 billion package to finance projects that boost economic growth, build resilience, and improve lives in developing countries.