Multilateral development banks eye up to $400 billion more lending over 10 years
Reuters
Published Apr 20, 2024 02:20PM ET
Updated Apr 20, 2024 02:50PM ET
By Marcela Ayres
WASHINGTON (Reuters) -The Inter-American Development Bank on Saturday said leaders of 10 multilateral development banks committed to take action in five critical areas, including additional lending headroom totaling $300-400 billion over the next decade.
The effort comes amid growing calls for these institutions to boost financing under favorable conditions to developing countries, which face greater challenges in climate transition and are more affected by the environment of higher global interest rates.
"Together, we will be able to achieve more, with greater impact and on a larger scale," said IDB President, Ilan Goldfajn.
Following a retreat held in Washington at the IDB headquarters, on the sidelines of the International Monetary Fund and World Bank spring meetings, the MDBs said the agreed plan involves "joint steps to work more effectively as a system," as reported by Reuters on Wednesday.
The group includes institutions such as the World Bank Group, the New Development Bank, the Asian Infrastructure Investment Bank, the European Investment Bank, and the African Development Bank.
The IDB said in a statement that the increased financing capacity will be supported by the offer of innovative financial instruments and by promoting the channeling of the IMF's Special Drawing Rights (SDRs) through MDBs.
The IDB also foresaw actions "providing more clarity on callable capital, which would help rating agencies better assess the value of callable capital."
The MDBs also committed to boosting action on climate change, envisioning the delivery of a common approach to measuring climate results on adaptation and mitigation, and reporting climate financing jointly.
The other pillars of work agreed upon on Saturday include strengthening country-level collaboration and co-financing, catalyzing private-sector mobilization, and enhancing development effectiveness and impact.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.