The World Bank has announced the removal of several loan fees to make borrowing more affordable for vulnerable countries.
The move, according to the World Bank, is part of broader efforts to expand financial capacity and address urgent global challenges, including climate change, inequality, and economic fragility.
The World Bank said on its official X handle that it had eliminated the prepayment premium on International Bank for Reconstruction and Development loans, introduced a grace period for commitment fees on undisbursed balances, and extended its lowest pricing to small, vulnerable states.
“The bank is working hard to make it easier for countries to borrow and to pay back their loans more easily by removing some fees on IBRD loans,” the World Bank said.
According to the World Bank, the aim is to ease financial pressure on nations most in need of development financing.
“These measures are designed to make borrowing easier and more affordable for countries facing significant challenges,” the bank said, adding that the reforms align with its vision of building a “better, more efficient, and bigger” institution capable of addressing overlapping global crises.
The fee eliminations are part of the World Bank’s broader financial reforms, which aim to increase lending capacity by $150bn over the next decade.
This is being achieved through innovative financial instruments, leveraging shareholder support, and optimising available capital.
The bank assured that these measures would not compromise its Triple-A credit rating.
GIK/APA