The investments were to help promote economic growth, overcome poverty, and promote economic enterprise in the developing nations, the Group said in a statement June 29, 2012.
The World Bank Group institutions contributing to this financial outcome were the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
During the 2012 fiscal year, the statement said IBRD committed $20.6 billion with the IDA, IFC and MIGA giving $14.7 billion, $15 billion+ and $2.3 billion respectively, according to the Group’s preliminary and unaudited numbers as of June 29, 2012.
The Bank said its financial commitments to countries in sub-Saharan Africa increased by $2.8 billion in FY12 to $12.2 billion and included $7.4 billion in IDA credits, grants, and guarantees to sub-Saharan Africa, (up from $7 billion from the previous year); $4 billion from IFC for private sector development projects; $147 million in IBRD lending; and $637 million in MIGA guarantees for projects in the region.
The Bank recently lowered its growth forecast for 2012 to 5.3% for developing countries, down from its January estimate of 5.4%, and noted that developing country budgets and central banks are not as well placed as they were in 2008/09 to address slowing economies.
“Their ability to respond may be constrained if international finance dries up and global conditions deteriorate sharply,” the Group said.
As developing countries face strong economic headwinds, the Bank Group said it supported an estimated 884 operations to promote opportunity and get needed services to the poor – for example, by improving education and health services, promoting the private sector, building infrastructure, and strengthening governance and institutions.
“The Bank is well positioned for future challenges,” said World Bank Group President Robert B. Zoellick, whose term as President ends at the close of the FY12 fiscal year.
“Since I joined the institution, the Bank Group has committed over $300 billion – most of it to help countries overcome food and economic crises,” Zoellick added.
By Ekow Quandzie