2 One of the OPEC Fund’s latest financial instrument is pol- icy-based lending. To date, the institution has committed US$435 million in support of financial and digital inclusion reforms in Morocco, sustainable economic recovery in Bang- ladesh, accelerated and equitable economic transition in Uzbekistan, fostering improved fiscal management, trans- parency, private sector development and environmental re- forms in Kosovo, and helping the design and implementation of climate change action and policies in Panama. Recognizing the synergies and scale that can be achieved when joining forces with partners, the OPEC Fund closely cooperates with bilateral and multilateral institutions around the world. These include development organizations of its member countries, multilateral and bilateral development banks, specialized agencies of the United Nations, as well as non-governmental organizations and private sector part- ners. To date 75 percent of the total number of committed OPEC Fund loans have been in partnership with other devel- opment institutions. In April 2020, the OPEC Fund approved a US$1 bil- lion facility in response to the COVID-19 pandemic to support partner countries addressing urgent needs and long-term recovery challenges. In the follow- ing 20 months, the OPEC Fund approved a total of US$1,045 million in the form of loans to the public and private sectors as well as in trade finance. In addition, the OPEC Fund approved several grants. Of the 30 op- erations under the COVID-19 facility 19 were sovereign and 11 were non-sovereign operations. To date, more than US$900 million has been committed, of which more than US$700 million has been disbursed. THE OPEC FUND’S COVID-19 RESPONSE
Asia (US$390.5 million) and Africa (US$203 million) were the largest recipients of committed funds, followed by Latin America and the Caribbean (US$196.7 million) and Europe (US$20 million). Financial sector and multi- sector projects saw the deployment of most COVID-19 resources, followed by the health sector. In response to partner country requests linked to so- cio-economic challenges arising from the COVID-19 pandemic, the OPEC Fund offered a variety of finan- cial instruments (Figure 5) . Budgetary support loans
One of the OPEC Fund’s distinguishing characteristics is its ability to respond swiftly and effectively to emerging devel- opment needs worldwide. Most recently, the Fund provided rapid support following the COVID-19 pandemic (see box) and, in 2022, approved a US$1 billion Food Security Action Plan. The plan allocates OPEC Fund resources to help coun- tries tackle the challenges arising from increased commodity prices and disrupted supply chains. The OPEC Fund’s initia- tive inspired a similar action plan by the Arab Coordination Group with an initial minimum volume of US$10 billion.
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