Thanks to new financing instruments, the World Bank will be able to grant more loans to poorer countries to help them tackle climate change and other cross-border challenges.
Financing commitments from several countries, including Germany, will increase the World Bank's lending volume by an additional $70 billion over the next 10 years, the development bank announced in Washington on Friday.
"We worked hard to develop these new financial instruments that boost our lending capacity, multiply donor funds, and ultimately allow us to improve the lives of more people," emphasized World Bank President Ajay Banga.
Germany had already announced €305 million ($325 million) in hybrid capital at last year's G20 summit in New Delhi. Now 10 more countries have joined in and pledges totalling $11 billion have been made - in the form of guarantees and hybrid capital.
Hybrid capital is a special class of bond with which the World Bank itself can raise more funds on the market. The World Bank now expects that, together with the commitments for hybrid capital and guarantees, loans totalling up to an additional $70 billion can be granted.
In addition to Germany, the United States, France, Japan and Italy are among the countries supporting the initiative with capital commitments.
"Together, we have succeeded in creating a better bank over the past 18 months. Today we are going a big step further and making it bigger," German Development Minister Svenja Schulze summarized.
She went on to say that they had campaigned for other countries to follow Germany's example. "And that has now worked."