World Bank commits $115 billion to development in fiscal year 2022

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World Bank Group commitments, including short-term financing, leveraging, and recipient-executed trust funds, reached $115 billion in fiscal year 2022, or $5.3 billion or 5% more than FY21 (FY21).

A significant portion of FY22 commitments supported actions to address the impact of overlapping global crises, food insecurity, increased fragility and conflict, and climate change.

This is contained in the audited financial statements approved by the World Bank Group for the year ended June 30, 2022, an unprecedented year, during which the Bank Group responded to multiple crises.

According to World Bank Group President David Malpass, “World Bank Group support to client countries grew to $115 billion in the last fiscal year.

“The results reflect the strong demand for financing from our client countries, the continued support of our shareholders and capital markets, and our strong financial position.”

The financial statements are accompanied by the management report on the financial results of the four institutions of the World Bank Group.

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The establishments are; the International Bank for Reconstruction and Development (IBRD), which provides loans and advice to middle-income countries; the International Development Association (IDA), the World Bank’s fund for the poorest and most vulnerable; the International Finance Corporation (IFC), the private sector arm of the Bank Group, and the Multilateral Investment Guarantee Agency (MIGA), whose mandate is to help stimulate foreign direct investment in developing countries .

Key financial statement highlights by institution show that IBRD’s net commitments increased 8% to $33.1 billion in FY22, the highest annual amount in a decade, while gross disbursements increased by 19% to $28.2 billion.

FY22 Commitments to lower-middle-income countries accounted for 50% of the total, and including loan repayments, net disbursements were $14.9 billion in FY22.

IBRD’s loan portfolio grew to $227.1 billion, a 4% growth over the previous year, and its net investment portfolio was $82.1 billion as of June 30, 2022 , against 85.8 billion dollars a year earlier, the portfolio of liquid assets remaining well above the prudential minimum liquidity.

According to the report, IBRD raised $40.8 billion in medium and long-term market debt in FY22, bringing total borrowings to $235.2 billion as of June 30. 2022, and the funds raised funded development loans, supported liquidity and were used to replace maturing debt.

The capital-to-loans (E/L) ratio, IBRD’s measure of capital adequacy, was 22.0%, 0.6% lower than a year ago, the increase total exposures having exceeded the increase in usable own funds.

IBRD’s reported net income was $4.0 billion in FY22, compared to net income of $2.0 billion in the prior year, primarily due to unrealized gains to the value of market on IBRD non-commercial portfolios.

Attributable income, the measure IBRD uses for net income allocation decisions, was $0.8 billion, down $0.4 billion from the prior year, primarily due to the increase in the provision for loan losses and other risks, mainly due to the increase in implicit income. term rate.

Disposable income was used to increase reserves and support development activities, including transfers to IDA.
IDA

To meet the increased financing needs of IDA’s resources, and with the strong support of its shareholders, the twentieth replenishment of IDA’s resources (IDA20) has been brought forward by one year, starting in FY23. .

The $93 billion funding envelope over the three-year replenishment period, FY23-FY25, is supported by $23.5 billion in member contributions.

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