The World Bank has announced a record allocation of $100 billion to support 78 of the world’s poorest countries through grants and low-interest loans. The announcement was made during a conference held in Seoul, South Korea, marking the largest funding in the history of the International Development Association (IDA), a World Bank entity.

Although the amount falls short of the $120 billion target sought by African nations, this financial package is deemed critical in addressing current global challenges, such as rising debt, climate disasters, inflation, and conflicts.

The United States contributed $4 billion, with additional pledges from countries like Norway, South Korea, the United Kingdom, and Spain. The World Bank plans to raise further funding through bonds and other financial instruments, aiming to reach the overall target by mid-2028.

This announcement comes at a time when a recent World Bank report revealed that debt levels in the 26 poorest nations have reached their highest since 2006, underlining the urgency of financial assistance to help these countries tackle escalating economic and environmental crises.