World Bank plans to propose 25 billion dollars to help poorest countries fight COVID-19 pandemic

The World Bank President, David Malpass informed on October 14, 2020 that the bank has called in for an emergency financing of 25 million dollars. The amount is to help the poorest countries in facing massive challenges caused due to the ongoing COVID-19 pandemic.

The World Bank Chief has also told the central bank governors and finance ministers of the G20 major economies that he will be proposing the supplemental financing package by the end of October 2020. The package will be proposed to the deputies of the International Developmental Association (IDA).

World Bank calls for emergency financing of 25 billion dollar to help the world’s poorest countries grapple with the massive challenges of the #COVID19 pandemic. pic.twitter.com/oKqsCKHr0F

— All India Radio News (@airnewsalerts) October 15, 2020

Reason behind the funding of poorest countries:

The Wold Bank Chief, David Malpass while announcing the plan for the funding poorest countries in order to assist them in their fight against pandemic expressed his concerns over the increasing risk of disorderly defaults among the low income countries all over the world.

He further added that World Bank and International Monetary Fund (IMF) have also proposed a joint action plan to help the most heavily indebted IDA countries.

IDA is International Development Association. It is a World Bank’s arm which helps the poorest countries in the world amid any form of economical crisis.