(Ecofin Agency) - For the 2016-17 fiscal year, World Bank committed a total of $58.8 billion (loans, grants, acquisition of stakes and guarantees) to developing nations. This is 4% less than last year.

The slump is explained mainly by the sluggish growth of the global economy in the first semester of 2017.

Despite overall financial support provided by the International Bank for Reconstruction and Development (IBRD) having contracted, that from other arms of the World Bank increased.

Indeed, IBRD’s support, in the form of development, financing instruments and risk-management products, amounted to $22.6 billion, down 24% compared to the previous year.

International Development Association (IDA), World Bank’s arm providing loans to poor nations, at virtually no interest rate, stood at $19.5 billion. A 20% surge resulting from the institution’s efforts to boost funding to borrowing nations.

Over the 2016-17 period, the International Finance Corporation (IFC) injected close to $11.9 billion of its own funds and raised $6.8 billion from its partners. Over the same period, more than 342 long-term financing projects benefited from the support of the World Bank’s arm which focuses only on the private sector.

Finally, guarantees issued by the Multilateral Investment Guarantee Agency (MIGA), set a new record towering above $4.8 billion. The World Bank’s institution which offers credit enhancement and political risk insurance, backed 33 projects raising $15.9 billion from private investors for developing countries. Most (45%) of these projects were in IDA countries, while 21% were in countries recording conflicts such as Burundi and Myanmar.

Fiacre E. Kakpo