Business
Crisis Shots World Bank Lending To $100bn
The World Bank has committed a record 100 billion dollars in financial support in 18 months to help developing countries recover from the global economic crisis, it was announced on Wednesday.
The Bank stepped up lending in July 2008 at the request of member countries, as demand from developing countries increased in the face of a worsening world recession and sharp drop in global trade.
The bulk of the lending since the onset of the crisis in 2008, about 60.3 billion dollars, was to middle-income countries, which struggled to borrow on global financial markets.
Typical lending for the countries had a averaged about 15 billion dollars a year before the crisis.
Meanwhile, loans and grants through the Bank’s fund for the world’s poorest countries, reached 21.2 billion dollars during the crisis.
The figure is in contrast to about 12 billion dollars a year prior to the crisis.
Kyle Peters, World Bank Director for Country Services, said such demand was natural for countries facing economic stress.
“A lot of countries wanted to make sure that social safety nets were expanded both in terms of the amount of support and the number of people who needed them,” he said.
“As governments saw their revenues shrink, due to the fall in global demand, countries turned to the World Bank for budget support to avoid cuts in spending for social programmes,” he said.
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Blue Economy: Minister Seeks Lifeline In Blue Bond Amid Budget Squeeze

Ministry of Marine and Blue Economy is seeking new funding to implement its ambitious 10-year policy, with officials acknowledging that public funding is insufficient for the scale of transformation envisioned.
Adegboyega Oyetola, said finance is the “lever that will attract long-term and progressive capital critical” and determine whether the ministry’s goals take off.
“Resources we currently receive from the national budget are grossly inadequate compared to the enormous responsibility before the ministry and sector,” he warned.
He described public funding not as charity but as “seed capital” that would unlock private investment adding that without it, Nigeria risks falling behind its neighbours while billions of naira continue to leak abroad through freight payments on foreign vessels.
He said “We have N24.6 trillion in pension assets, with 5 percent set aside for sustainability, including blue and green bonds,” he told stakeholders. “Each time green bonds have been issued, they have been oversubscribed. The money is there. The question is, how do you then get this money?”
The NGX reckons that once incorporated into the national budget, the Debt Management Office could issue the bonds, attracting both domestic pension funds and international investors.
Yet even as officials push for creative financing, Oloruntola stressed that the first step remains legislative.
“Even the most innovative financial tools and private investments require a solid public funding base to thrive.
It would be noted that with government funding inadequate, the ministry and capital market operators see bonds as alternative financing.
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