World Bank President Ajay Banga Unveils Plans To Tackle Climate Change And Other Global Challenges

In a bid to help countries tackle climate change and other challenges, World Bank President Ajay Banga has unveiled plans to stretch the bank’s balance sheet, Reuters reports.

Reforming the World Bank: The new proposals, which are still under discussion with shareholder countries, were announced during a meeting of finance officials from the Group of 20 major economies in Gandhinagar, India.

These steps are in addition to the initial measures approved in April that will boost World Bank lending by up to $50 billion over the next decade.

See Also: Jack Dorsey’s Block Is Building Sci-Fi Inspired Crypto Wallet To Safeguard Bitcoin Business

U.S. Treasury Secretary Janet Yellen called for more work to reform the World Bank and other multilateral development banks, stating that capital increases would only be considered after they had undertaken changes to expand their capacity to help countries tackle climate change and other challenges.

“We are making quick progress,” Banga said. “

We are building a better bank, but eventually we will need a bigger bank.”

Boosting Lending Power: The new plans could generate tens of billions in additional lending by allowing shareholders to guarantee loans if countries cannot repay them. This move would allow the World Bank to generate $6 in new lending for every $1 in guarantees over a 10-year period. The bank could also issue a new hybrid capital instrument that would allow shareholders to invest in bonds, boosting lending by up to $6 billion.

Furthermore, the bank plans to expand very low or zero-interest lending, including through a new $6 billion crisis facility set up for the poorest countries through the International Development Association.

Read Next: Ford Worried About Tesla’s Cybertruck, Says Analyst After F-150 Lightning Price Slash

Image via Flickr/ Mastercard News