WASHINGTON (Reuters) – The World Bank, under pressure to do more to help developing countries cope with climate change, voted on Tuesday to change its internal lending guidelines to free up $30 billion in additional lending capacity over the next decade, World Bank President Ajay Banga told Reuters.
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, in line with an independent report prepared for the Group of 20 (G20) major economies.
The move, coupled with changes in the bank’s pricing policies, means the bank has increased its lending capacity by a total of $150 billion by adjusting its balance sheet, Banga said in a Reuters NEXT Newsmaker interview.
The changes come at a time of mounting global challenges such as the Ukraine war, escalating violence in the Middle East and massive government debt levels.
The IBRD last changed its equity-to-lending ratio in 2023, dropping it to 19% from 20%.
(Reporting by Andrea Shalal; Editing by Dan Burns and Andrea Ricci)
Brought to you by www.srnnews.com
