WASHINGTON (AP) – A World Bank program that provides loans and grants to poor countries will gain around $34 billion over the next three years under an agreement reached by donor nations, the development bank said Tuesday.
The money will go to the World Bank’s International Development Association. IDA provides financial assistance to 81 impoverished countries, such as India, Bangladesh and Uganda.
Around $18 billion will come from the United States and other donor nations, said Geoff Lamb, a World Bank vice president and chairman of negotiations for IDA’s funding. The remaining $16 billion will come from loan repayments and transfers from World Bank net income, Lamb said.
"We are very, very pleased with this outcome," Lamb said. "We think this is a big win for the poorest countries."
The $34 billion will finance the IDA program from July 1 through June 30, 2008.
The United States plans to provide $950 million a year, Treasury Department officials said.