To lower borrowing costs for vulnerable nations, the World Bank has announced the elimination of several loan fees. The action is a component of larger initiatives to increase financial capacity and tackle pressing global issues including inequality, climate change, and economic instability.

This was revealed by the international bank in a statement on Wednesday. The bank has extended its lowest pricing to tiny, fragile nations, removed the prepayment cost on International Bank for Reconstruction and Development loans, and instituted a grace period for commitment fees on undisbursed amounts.

“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 financial institution stated.

The financier claims that these adjustments are intended to relieve the financial strain on countries that require development funding the most.

“These measures are designed to make borrowing easier and more affordable for countries facing significant challenges,” the bank said. It added that the reforms align with its vision of building a “better, more efficient, and bigger” institution capable of addressing overlapping global crises.

The World Bank’s larger financial reforms, which include fee eliminations, are intended to boost lending capacity by $150 billion over the next ten years.

As part of the changes, the IBRD’s equity-to-loans ratio was lowered from 20% to 18%, allowing for an additional $70 billion in lending over ten years.

According to the statement, $1 billion was obtained through a guarantee from the Asian Infrastructure Investment Bank, and an additional $10 billion has been released through bilateral guarantees.

“The adjustments to our capital framework reflect our commitment to scaling up resources while maintaining financial stability,” the bank said.

The international lender highlighted that these adjustments are essential to tackling the billions of dollars that are required each year to help fragile governments, fight climate change, and advance digital inclusion.

It did concede, nevertheless, that states and multilateral organisations are insufficient to discharge these financial obligations on their own.

The Bank has created a Framework for Financial Incentives to close the gap, promoting investments in cross-border issues like pandemic prevention, energy access, water security, and biodiversity.

The Russian Foreign Ministry reported Tuesday that two crew members are still unaccounted for after an explosion tore through the engine room of a Russian cargo ship, Ursa Major, which sunk in the Mediterranean Sea overnight.

Built-in 2009, the ship was under the management of Oboronlogistika, a business involved in the military building activities of the Russian Defence Ministry.

The corporation had previously claimed that the ship was on its route to Vladivostok, a port in the far east of Russia, with two enormous port cranes attached to its deck.

Fourteen of the ship’s sixteen crew members had been rescued and sent to Spain, according to a statement from the Foreign Ministry’s crisis department, while two have remained unaccounted for. The reason for the engine room explosion was not mentioned.

The state news agency RIA reported that Russia’s embassy in Spain was in contact with Spanish authorities and was investigating the sinking’s circumstances.

Both Oboronlogistika and SK-Yug, the ship’s direct owner and operator and a company listed by LSEG as a member of the group, declined to comment on the sinking.

In 2022, the United States imposed sanctions on both organisations and the Ursa Major itself due to their connections to the Russian military.

Unconfirmed video footage taken by a passing ship on December 23 showed the ship significantly listing to its starboard side with its nose far lower in the water than usual. The clip was posted on Russia’s life.ru news portal on Tuesday.

The Ursa Major sent out a distress call to Spain’s Maritime Rescue Service on Monday while it was around 57 miles off the coast of Almeria.

A ship in the area reported poor weather, a lifeboat in the sea, and the Ursa Major listing to the starboard side, according to the report.

A passing ship captured unconfirmed video footage of the ship on Dec. 23 listing substantially to its starboard side, with its bow much lower down in the sea than usual. The clip was posted on Russia’s life.ru news portal on Tuesday.

On Monday, while the Ursa Major was around 57 miles off the coast of Almeria, Spain’s Maritime Rescue Service reported that it had received a distress call. According to the statement, it had gotten in touch with a neighbouring ship that had reported poor weather, a lifeboat in the sea, and the Ursa Major lowering.