by David Lawder
WASHINGTON (Archyde.com) – The World Bank is seeking to dramatically expand its lending capacity to respond to global crises, including climate change, and will begin negotiations with its shareholders ahead of its April meetings on various proposals, according to a “sheet of development road” that Archyde.com was able to consult on Monday.
The document, sent to shareholder governments, marks the start of a negotiation process aimed at modifying the bank’s mission and financial resources, changing its historical lending model.
The institution’s management wants specific proposals to change its mission, operating model and financial capacity to be ready for approval by the Joint Development Committee of the World Bank and the International Monetary Fund (IMF) in October, according to the document.
A spokesperson for the bank said the document was intended to provide details on the scope, approach and timeline for the institution’s development, that regular updates would be provided to shareholders and that decisions would be taken more late in the year.
A possible capital increase, changes aimed at unlocking loans and new financing tools will be studied, the document indicates.
The bank said the proposals also include higher statutory lending limits, lower capital requirements on loans and the use of callable capital – money pledged but not paid by member governments – for loans.
“The challenges facing the world call for intensified support from the international community,” writes the World Bank.
“For the World Bank to continue to play a central role in financing development assistance and climate action, it will take a combined effort from shareholders and management to scale up the bank’s financing capacity.”
The institution believes that the evolution of its mission will require recruitment and additional budgetary resources.
(Report David Lawder; French version Camille Raynaud)
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