The New Nation - Internet Edition

Agency

During fiscal year 2007, ending June 30, the World Bank Group (WBG) commited US $34.3 billion in loans, grants, equity investments, and guarantees to its members and to private business in its member countries, up $2.7 billion (7.8 percent) from fiscal year 2006. The recipients are using these funds in more than 620 projects designed to overcome poverty and enhance growth - for example, by improving education and health services, promoting private sector development, building infrastructure, and strengthening governance and institutions.

The WBG institutions contributing to this financial outcome are: the International Bank for Reconstruction and Development (IBRD), which provides financing, risk management products, and other financial services to members; the International Development Association (IDA), which provides interest-free loans and grants to the poorest countries; the International Finance Corporation (IFC), which makes equity investments, and provides loans, guarantees and advisory services to private-sector business in developing countries; and the Bank Group's political risk insurance agency, the Multilateral Investment Guarantee Agency (MIGA).

IDA commitments were $11.9 billion, 25 percent higher than the previous year, and the highest in IDA's history. IBRD commitments in FY07 totaled $12.8 billion. IFC commited $8.2 billion for private sector development in developing countries, an all-time high, which topped last year's total by $1.5 billion - $3 billion of the total, went to IDA countries. Of MIGA's $1.4 billion in guarantees, $387 million went to projects in IDA countries. MIGA's exposure in IDA countries now stands at 41% of its portfolio.

In addition, IBRD carried out $5.4 billion in interest rate and currency risk management transactions on behalf of its members.This is an increase of more than three-fold over totals for the past several years and highlights the expanding portfolio of financial services we offer.

Financial commitments provided by the World Bank Group to the countries of sub-Saharan Africa increased by $1.8 billion in FY07 to $7.5 billion and included a record $5.8 billion in IDA credits, grants, and guarantees to sub-Saharan Africa, (up by $1billion from the previous year); $1.4 billion from IFC for private sector development projects, (double last year's effort); and $311 million in MIGA guarantees for projects in the region, up $131 million from 2006.

MIGA Executive Vice President Yukiko Omura said, "Supporting investments into sub-Saharan Africa continues to be a priority for MIGA. Since the agency's inception in 1988, we have issued $2.3 billion in guarantees in support of projects in 27 countries in the region. In fiscal year 2007, MIGA provided guarantees ranging from support to a micro-credit institution in Cameroon to backing a large telecommunications project in Guinea."