WB Group shareholders endorse USD13 billion transformative capital package
Monday, 23/04/2018 12:14 (GMT+7)
(CPV) - The World Bank Group’s shareholders have endorsed an ambitious package of measures that include a USD13 billion paid-in capital increase, a series of internal reforms, and a set of policy measures that greatly strengthen the global poverty fighting institution’s ability.
The package agreed by the Development Committee of the Board of Governors consists of USD7.5 billion paid-in capital for IBRD and USD5.5 billion paid-in capital for IFC, through both general and selective capital increases, as well as a USD52.6 billion callable capital increase for IBRD.
The combined financing arms of the World Bank Group are expected to reach an average annual capacity of nearly USD100 billion between FY2019-2030, benefiting all Bank Group members across the income spectrum.
World Bank Group President Jim Yong Kim said this capital package allows for greater responsiveness to risks to global stability and security, particularly in poorer countries and fragile states.
The package will better assist all client countries in addressing global challenges while deploying scaled-up assistance to areas that most need financing, as well as putting forward a robust commitment by the World Bank Group to further strengthen its operational model and effectiveness.
The Development Committee also accepted the recommendations of the Shareholding Review completed earlier this year, including a Selective Capital Increase (SCI) for IBRD.
In addition, shareholders reiterated their commitment to the twin goals of ending extreme poverty and boosting shared prosperity and to the four key priorities that the World Bank Group’s Forward Look established: stay engaged with all clients; lead on the Global Public Goods agenda; mobilize capital and create markets; and continually improve effectiveness and the internal operational model.
The Development Committee communiqué noted the challenging environment in which the package was endorsed: “The capital package has been developed against the backdrop of a changing and increasingly complex development landscape. Despite impressive gains in recent decades, development progress remains uneven. Keeping up the pace of past progress and addressing emerging challenges will require sustained effort in the face of persistent global headwinds and structural changes to the global economy.”
It also welcomed the successful conclusion of the negotiations on the financial and policy package, and has asked the Board and management to submit draft resolutions to Governors by the end of June for approval by the Annual Meetings 2018./.
ATP