World Bank to lend $50 bn after reforms
Published: 05:04 PM,Apr 08,2023 | EDITED : 09:04 PM,Apr 08,2023
Washington: The World Bank’s ongoing reform could result in a $50-billion lending boost over the next decade, US Treasury Secretary Janet Yellen said ahead of stakeholders’ meetings next week where key changes are expected to be announced.
Central bankers, finance ministers and participants from more than 180 member countries are expected to gather in the US capital for the International Monetary Fund and World Bank’s spring meetings in the coming week.
A key topic of discussion will be the World Bank’s evolution, amid a push for lenders to revamp and meet global challenges like climate change. The United States is the largest shareholder of the World Bank Group.
“I expect to be an update of the bank’s mission to add building resilience against climate change, pandemics, and conflict and fragility to the core goals,” Yellen said on Thursday.
She added that there needs to be a recognition that these challenges aren’t separate or conflicting but rather, inextricably linked.
“Second, there will be an announcement that the bank is stretching its financial capacity to meet these objectives, and adopting changes or endorsing changes that could result in an additional $50 billion in extra lending capacity over the next decade,” Yellen said.
The move would be a significant resource boost marking a 20-per cent rise in the International Bank for Reconstruction and Development’s (IBRD) sustainable lending level. The IBRD is the World Bank’s middle-income lending arm.
Yellen also said there would be an announcement on updating the bank’s operational model to “orient it towards the goals that we’re setting.” Among other things, this includes creating more incentives for the mobilisation of both domestic and private capital.
“We seek additional reforms during the rest of this year,” Yellen said.
In March, the World Bank submitted an evolution plan to be discussed with its development committee on April 12, during the spring meetings.
Noting that World Bank President David Malpass has laid a “solid foundation” for the ongoing work, Yellen added that she expects US candidate Ajay Banga to be elected to the helm of the organisation and continue the revamp. — AFP
Central bankers, finance ministers and participants from more than 180 member countries are expected to gather in the US capital for the International Monetary Fund and World Bank’s spring meetings in the coming week.
A key topic of discussion will be the World Bank’s evolution, amid a push for lenders to revamp and meet global challenges like climate change. The United States is the largest shareholder of the World Bank Group.
“I expect to be an update of the bank’s mission to add building resilience against climate change, pandemics, and conflict and fragility to the core goals,” Yellen said on Thursday.
She added that there needs to be a recognition that these challenges aren’t separate or conflicting but rather, inextricably linked.
“Second, there will be an announcement that the bank is stretching its financial capacity to meet these objectives, and adopting changes or endorsing changes that could result in an additional $50 billion in extra lending capacity over the next decade,” Yellen said.
The move would be a significant resource boost marking a 20-per cent rise in the International Bank for Reconstruction and Development’s (IBRD) sustainable lending level. The IBRD is the World Bank’s middle-income lending arm.
Yellen also said there would be an announcement on updating the bank’s operational model to “orient it towards the goals that we’re setting.” Among other things, this includes creating more incentives for the mobilisation of both domestic and private capital.
“We seek additional reforms during the rest of this year,” Yellen said.
In March, the World Bank submitted an evolution plan to be discussed with its development committee on April 12, during the spring meetings.
Noting that World Bank President David Malpass has laid a “solid foundation” for the ongoing work, Yellen added that she expects US candidate Ajay Banga to be elected to the helm of the organisation and continue the revamp. — AFP