Ireland will contribute approximately €141.4 million to the World Bank’s latest funding round for its support programme for the poorest countries, marking a 33.5% increase from its previous donation, Finance Minister Paschal Donohoe has announced, reports RTE.
The funding will go to the International Development Association (IDA), which supports low-income countries dealing with challenges like debt, climate change, inflation, and conflict.
“Ireland has been a long-time supporter of the work of the World Bank,” Mr Donohoe said in a statement issued during the IMF and World Bank Spring Meetings in Washington DC, reports RTE.
“This contribution will further Ireland’s international development goals which focus on achieving the UN Sustainable Development Goals,” he added, reports RTE.
Mr Donohoe is attending the meetings in his dual role representing Ireland and the euro area, as he currently serves as President of the Eurogroup. The sessions began on Monday and will continue through Saturday.
The IDA replenishment, a process that occurs every three years, has drawn significant attention this week as US President Donald Trump’s administration seeks to reframe its relationship with global financial institutions like the World Bank and IMF, reports RTE.
In December, the World Bank announced a record $100 billion (€87 billion) in donor commitments to the IDA, which included a $4 billion pledge by former President Joe Biden’s administration.
However, uncertainty remains about whether the current US administration will honour that commitment, reports RTE.
US Treasury Secretary Scott Bessent said on the sidelines of the meetings that no final decision has been made. He explained it would depend on US budget talks and how well the World Bank delivers measurable development outcomes.
Some European nations have also reduced their contributions, as many governments shift funding priorities toward defence and domestic needs, moving away from international development, reports RTE.
World Bank President Ajay Banga warned last week that if the US pulls back and European pledges shrink, the funding round could fall to between $80 billion and $85 billion.
“In light of the current international landscape, geopolitical tensions and decisions by others in respect of commitments to Official Development Assistance, it is now more important than ever that we step up and make a contribution where we can,” Mr Donohoe stated, reports RTE.
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