Devex: U.S. lawmakers raise financing concerns about World Bank’s fund for poorest countries
“Two Democratic lawmakers have called on the U.S. Government Accountability Office to review the ‘financial viability’ of the World Bank’s fund for low-income countries, the International Development Association. Rep. Maxine Waters, chairwoman of the House Financial Services Committee, and Sen. Patrick Leahy, vice chairman of the Senate Appropriations Committee, sent a letter to GAO last month asking that the office ‘analyze IDA’s financing model, financial viability, and risk management.’ … The letter … requests a review to generate more information that can help the U.S. Congress perform its oversight duties and to prepare for the upcoming negotiations over IDA’s next replenishment. The lawmakers’ concern is that if more countries experience debt distress due to COVID-19 and other financial pressures — something the bank has frequently warned about — they could struggle to repay their IDA loans…” (Igoe, 10/6).