BY BAMIDELE FAMOOFO
World Bank Group commitments (including short-term finance, mobilization and Recipient-Executed Trust Funds) rose to $115 billion in fiscal year 2022, $5.3 billion or 5 percent higher than financial year (FY21).
A significant portion of the FY22 commitments supported measures addressing the impact of global overlapping crises, food insecurity, increasing fragility and conflict as well as climate change.
“World Bank Group support to client countries increased to $115 billion over the last fiscal year,” said World Bank Group President David Malpass. “The results reflect strong demand for financing from our client countries, continued backing from our shareholders and capital markets, and our strong financial position.”
The financial statements are accompanied by the Management’s Discussion and Analysis of financial results for the four World Bank Group institutions: the International Bank for Reconstruction and Development (IBRD), which provides loans and advice to middle-income countries; the International Development Association (IDA), the World Bank’s fund for the poorest and most vulnerable; the International Finance Corporation (IFC), the Bank Group’s private sector arm; and the Multilateral Investment Guarantee Agency (MIGA), whose mandate is to help drive impactful foreign direct investment to developing countries.
IBRD’s net commitments increased 8 percent to $33.1 billion in FY22, the highest annual amount in a decade; gross disbursements increased 19 percent to $28.2 billion. FY22 Commitments to lower-middle-income countries represented 50 percent of the total. Considering loan repayments, net disbursements were $14.9 billion in FY22. IBRD’s loan portfolio increased to $227.1 billion, 4 percent growth from the prior year.
In FY22, IDA net commitments were $37.7 billion, the highest annual level in IDA’s history. IDA’s gross disbursements were $21.2 billion in FY22, higher than the average of the past five years and pre-COVID levels. The net outstanding loan balance was $174.5 billion as of June 30, 2022, $3.3 billion lower than FY21, mainly due to currency translation of $12.5 billion, partially offset by net disbursements.
IFC’s total commitments in FY22 reached $32.8 billion, an increase of 4 percent from the previous year. Long-term finance commitments were $23.2 billion, of which $12.6 billion was for IFC’s own account and $10.6 billion for core mobilization. Additionally, IFC delivered a record high of $9.7 billion in short-term finance, an 18 percent increase compared to the previous year.
IFC reported a net loss of $464 million for FY22, primarily driven by lower treasury income as a result of sharply rising yields for U.S. Treasuries since January 2022. Unrealized losses on equity investments were $617 million (unrealized gains of $2.6 billion in FY21) mainly due to reclassifying gains from unrealized to realized upon sales of investments, and to a lesser extent driven by valuation changes. In comparison, IFC’s net income of $4.2 billion in FY21 had a substantial component of unrealized gains on investments of $3.3 billion, when the markets rebounded post the immediate effect of COVID-19.