admin
Washington. — The World Bank is seeking to vastly expand its lending capacity to address climate change and other global crises and will negotiate with shareholders ahead of April meetings on proposals that include a capital increase and new lending tools, according to an “evolution road map” seen by Reuters.
The road map document — sent to shareholder governments — marks the start of a negotiation process to alter the bank’s mission and financial resources and shift it away from a country- and project-specific lending model used since its creation at the end of World War 2.
The World Bank management aims to have specific proposals to change its mission, operating model and financial capacity ready for approval by the joint World Bank and International Monetary Fund (IMF) Development Committee in October, according to the document.
A World Bank spokesperson said that the document aimed to provide details on the scope, approach and timetable for the evolution, with regular updates for shareholders and decisions later in the year.
The reform of multilateral development banks was a topic of fierce debate in recent months after developing countries faced mounting pressure from inflation, and energy and food shortages fuelled by Russia’s war in Ukraine, slowing growth, mounting debt burdens and growing vulnerability to climate shocks.
The development lender will explore options like a potential new capital increase, changes to its capital structure to unlock more lending and new financing tools such as guarantees for private sector loans and other ways to mobilise more private capital, according to the document. — Reuters.
Online Reporter