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Spain has committed 400 million euros to a World Bank fund aimed at supporting the poorest countries.

Spain announced on Thursday its plans to contribute 400 million euros ($433 million) to the World Bank's fund for low-income countries, representing a 37% increase over the previous International Development Association (IDA) replenishment cycle. The announcement was made by Spanish Economy Minister Carlos Cuerpo during the IMF and World Bank annual meetings in Washington and serves as an early commitment ahead of a pledging conference scheduled for December 6.

"This is an important step that we hope others can follow to bolster much-needed financing to fight poverty and inequality," Cuerpo stated, emphasizing Spain's belief in IDA's capacity to significantly impact low-income country development.

World Bank President Ajay Banga aims for IDA's latest pledge drive, which occurs every three years, to surpass the $93 billion replenishment achieved in December 2021. Banga indicated last week that a $120 billion replenishment is possible, although it would require substantial increases in country commitments.

To provide additional support for vulnerable economies, Spain has also included contingency clauses in its official loans, allowing countries the option to pause debt service payments in the event of natural disasters and food or health crises.