TOKYO, Reuters – Japan has pledged $3.4 Billion in the largest financial contribution it made to the International Development Association of the World Bank to help recover low-income countries affected by the COVID-19 pandemic. Officials from Japan’s finance ministry said Tuesday.

Japan held an online meeting to discuss the 20th replenishment for the IDA. The event was brought forward one year by the third-largest economy in the world amid concerns about a lack of funding to support vaccines.

IDA is the biggest provider of concessional assistance and has a broad agenda that includes addressing global health, climate change, natural disasters, as well as transparency of debt in developing countries.

Shunichi Suzuki (Japan Finance Minister) stated at the meeting that now is the best time for global cooperation.

COVID-19 has caused a world-wide crisis that is unprecedented. “We are at risk of losing our achievements in ending poverty extreme and sharing wealth.”

Global economic growth looks solid this year, and the next. However, there are widening gaps between developed and developing economies, which could undermine efforts to end extreme poverty.

The Group of 20 financial chiefs stated that they look forward to an ambitious replenishment of IDA in October.

In a capital-raising exercise that is conducted every three years, the World Bank aims at raising more than $90 Billion for IDA.

Japan contributed 13.8% to a total $24.9 billion in subscription bonds that will be redeemed by IDA. This is similar to the last replenishment exercise when it made $3.2 billion.

Japan was at the time the second-largest contributor, after Britain. France, Germany, France, and China followed.

This sum, $24.9 billion, is a key part of total replenishment. It includes redemptions of loans IDA offered previously as well as bond issues by IDA to raise money.

IDA provides grants and loans over long time periods with low interest rates. It last raised capital by $82 Billion in December 2019.