WASHINGTON (Reuters) - The World Bank under Paul Wolfowitz's leadership provided $34.3 billion in loans, grants, equity investments and guarantees to developing countries in fiscal 2007, $2.7 billion more than in 2006, the lender said on Tuesday.

In figures for fiscal year 2007 ended June 30, the bank said it disbursed a record $11.8 billion from a fund that provides interest-free loans for anti-poverty projects in the world's poorest countries. That is a 25 percent increase over 2006 and an all-time high for the fund, the International Development Association.

"We can and should do more," Wolfowitz's successor, Robert Zoellick, said in a statement.

"Given the great needs among diverse developing countries, the World Bank Group can make its capital work for people by creating development solutions for all. That would help advance an inclusive and sustainable globalization."

Wolfowitz stepped down on June 30 after resigning amid an ethics scandal involving a high-paying promotion for his companion, a Middle East expert who worked at the bank.

Wolfowitz, a former No. 2 Pentagon official who struggled to shake his ties as the architect of the U.S. war in Iraq, was often criticized for slowing the flow of loans in his campaign to weed out corruption in projects that the bank financed.

According to the figures, IDA commitments to sub-Saharan Africa increased by $1.8 billion in 2007 to $7.5 billion and included a record $5.8 billion in IDA credits, grants, and guarantees.

"While many challenges remain in Africa, there have been clear signs of progress, said Obiageli Ezekwesili, the bank's vice president for Africa.

"We are now seeing increases in African countries' per capita income consistent with those of other developing countries and African countries have made great strides in expanding access to health and education," she added.

Meanwhile, the bank's International bank for Reconstruction and Development, which provides financing, risk management and other financial services to member countries, doled out $12.8 billion in 2007, less than the $14.1 billion it committed in fiscal 2006.

The bank's private-sector lender, the International Finance Corp., committed a record $8.2 billion for private sector development in developing countries, topping last year's $1.5 billion.

MIGA, the World Bank's guarantee agency, provided $1.4 billion in guarantees; $387 million went to projects in poor countries where its exposure now stands at 41 percent of its portfolio.

Also, IBRD carried out $5.4 billion in interest rate and currency risk management transactions on behalf of its members, a three-fold increase over totals for the past several years and highlights the bank's expanding portfolio of financial services, it said.