World Bank acts to boost lending capacity by $30 billion over 10 years

16/10/2024 6:41

        The World Bank voted on Tuesday to change its internal lending guidelines, freeing up $30 billion in additional lending capacity over the next decade to help developing countries and emerging markets grapple with climate change and other global challenges, World Bank President Ajay Banga told Reuters NEXT.
        
        Banga said the bank's International Bank for Reconstruction and Development (IBRD) arm would lower its equity-to-lending ratio by 1 percentage point to 18%, taking on a bit more risk, as it continues to implement reforms outlined in an independent report prepared for the Group of 20 (G20) major economies and
        demanded by its shareholders, including the United States.
        
        The move, coupled with changes in the bank's pricing policies, means the bank will be increasing its lending capacity by a total of $150 billion over the next seven to 10 years through adjustments to its balance sheet, Banga said in a Reuters NEXT Newsmaker interview.