Switzerland supports the World Bank in poverty reduction and sustainable reconstruction after the COVID-19 crisis

Press release, 18.05.2022

Switzerland will contribute USD 725 million to the 20th replenishment of the World Bank's International Development Association (IDA). The funds will be used in the 74 poorest countries in the world to fight poverty. They are also intended to promote reconstruction after the COVID-19 crisis and contribute to the implementation of the 2030 Agenda for Sustainable Development. In addition, Switzerland will contribute USD 56.87 million to the Multilateral Debt Relief Initiative (MDRI). This was decided by the Federal Council on 18 May 2022.

The Covid 19 crisis has hit many developing countries hard. Around 100 million additional people have fallen back into extreme poverty as a result of the crisis. The 20th replenishment of the IDA was brought forward by one year in a bid to ensure that the World Bank has the necessary resources to respond to the crisis.

IDA is the World Bank's fund to help the poorest countries. Between July 2022 and June 2025, it will invest USD 93 billion to improve education and health services, promote the private sector and job creation, and strengthen resilience to climate change and crises, particularly in fragile and conflict-affected countries.  

Switzerland will contribute USD 725 million to the 20th replenishment of IDA. The funds are paid out over nine years. In addition, Switzerland is continuing its commitment to the Multilateral Debt Relief Initiative (MDRI), in place since 2005, with USD 56.87 million for two additional years. Thanks to this initiative, over-indebted developing countries do not have to repay their IDA loans if they implement certain reforms.

In the replenishment negotiations, Switzerland successfully advocated for ambitious goals in education and health, governance and debt management, private sector development, gender equality, climate and biodiversity, and crisis prevention and preparedness.

Switzerland is a long-standing member of the World Bank and is actively involved in shaping the strategic policy outlines and programmes through its representation in the governing bodies. It supports IDA within the framework of the International Cooperation Strategy 2021-2024. Switzerland's commitments shall be charged to the Development Cooperation framework credit in accordance with the Federal Decree of 21 September 2020.


Address for enquiries:

EAER Communications
info@gs-wbf.admin.ch,
+41 58 462 20 07

FDFA Communication
info@eda.admin.ch
+41 58 462 31 53


Publisher:

The Federal Council
Federal Department of Economic Affairs, Education and Research
Federal Department of Foreign Affairs