Sweden Announces Record 8.2 Billion Kronor Contribution to IDA
Sweden makes its largest-ever contribution of 8.2 billion kronor to the International Development Association.
Key Points
- • Sweden contributes 8.2 billion SEK to IDA, its largest amount ever.
- • The funding will support low-income countries and stimulate economic growth.
- • Sweden is the second-largest IDA contributor relative to its economy size.
- • Funds will be allocated gradually from 2026 to 2034 as debt securities.
Sweden has officially declared a historic contribution of 8.2 billion kronor to the International Development Association (IDA), marking its largest-ever financial commitment to this organization that supports low-income countries. Announced by Minister for International Development Cooperation and Foreign Trade, Benjamin Dousa, this funding aims to help address the growing economic and geopolitical challenges facing vulnerable nations globally.
Dousa highlighted that each krona contributed to the IDA can generate three to four kronor in subsequent World Bank loans, thereby promoting necessary economic reforms and improving investment conditions in these regions. As a result of this new funding initiative, Sweden solidifies its standing as the second-largest contributor to IDA relative to its economy size. The contribution will be processed through debt securities deposited in the Riksbank and will be paid out gradually from 2026 to 2034, financed within the existing aid budget.
This significant financial move reflects Sweden's commitment to international development and its proactive role in global humanitarian efforts, as mentioned by various government officials. By contributing to the IDA, Sweden continues its long-standing tradition of prioritizing development assistance aimed at alleviating poverty and fostering economic growth in low-income nations.