World Bank chief Banga unveils new plan to boost lending 'firepower'

The bank’s largest shareholder, the United States, kicked off the reform process in October and subsequently nominated Banga to succeed former president David Malpass. ), and endow it with acceleration close to years old institution. U.S. Treasury Secretary Janet Yellen this week called for more work to reform the World Bank and other multilateral Adding capital to expand capacity and help countries address climate change and other challenges will only be considered later.

“We are making rapid progress,” Banga said in prepared remarks. “We’re building a better bank, but eventually we’re going to need a bigger bank.” The scheme can Generating tens of billions of dollars in additional loans If countries fail to repay loans, the World Bank said the move would allow it to $1 Guarantee Generates $6 New Loan- $ 1 billion for every 5 billion USD.

As a next step, the bank could also issue a new hybrid capital vehicle that would allow shareholders to invest in bonds, allowing it to grow loans by up to $6 billion. It proposes to but uncommitted funds) to absorb more risk and expand the loan. Currently “Paid”.

and plans to expand very low- or zero-interest loans, including through the creation of a new $6 billion crisis loan for the poorest countries through the International Development Association. 08