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Published 08:18 IST, October 17th 2020

World Bank to propose additional $25 bn to help poorest countries amid COVID-19 pandemic

The World Bank has vowed to propose a 25 billion dollar emergency funding to help the poorest countries to deal with the COVID-19 pandemic, as per reports.

Reported by: Sounak Mitra
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The World Bank has vowed to propose a $25 billion emergency funding to help the poorest countries of the world that are facing huge challenges due to the COVID-19 pandemic. As per reports, the World Bank chief David Malpass spoke to the finance ministers and central bank governors of the G20 major economies that he would additional financing package later this month to deputies of the International Development Association (IDA). 

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Additional financial package

In addition to this, Malpass expressed his concerns over the increasing risks of pending defaults among the low-income group countries. He added that the World Bank and International Monetary Fund have come up with a joint action plan to help the most heavily-indebted IDA countries. As per reports, the World Bank and the International Monetary Fund said that the global economic contraction caused by the ongoing coronavirus pandemic is the largest in the last eight decades, raising the world poverty rate, exacerbating inequalities and damaging long-term economic growth prospects.

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The World Bank Group on October 13 approved funds of $12 billion for developing countries to finance the purchase and distribution of COVID-19 vaccines for their citizens. The financing is part of an overall package of $160 billion that the World Bank is planning to release by next year for developing countries.

The World Bank with its financing also aims to provide treatments for the disease and increase the testing capacity of the countries, apart from the purchasing of COVID-19 vaccines. The main objective is to strengthen the pandemic response system in developing countries. The financing will also focus on building more efficient supply chain and logistics management for vaccine storage handling, trained vaccinators, and large-scale communication and outreach campaigns to reach communities and households.

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World Bank Group's private sector arm International Finance Corporation (IFC) is also investing $4 billion in vaccine manufacturing firms to ramp up the production of potential vaccines and ensure that the developing markets gain access to available drugs. A COVID-19 vaccine is yet to come to the market for large scale use, however, several drugs around the world are in their final phase of testing. Experts believe that a treatment will be available by next year. 

READ: World Bank Funded Project STARS Approved Under NEP 2020, Pokhriyal Highlights Strengths

Image: AP

08:18 IST, October 17th 2020