PARIS: Multilateral development banks like World Bank, IMF are set to find $200 billion in extra firepower for low-income economies, a move that may require wealthy nations to inject more cash, world leaders said on Friday. The leaders, gathered at a summit in Paris to collect funding for the climate transition and post-Covid debt burdens of poor countries.
Many in attendance, however, said over the two-day summit that the World Bank and the International Monetary Fund were unable for tackling the most pressing challenges and needed a broad revamp.
“We expect an overall increase of $200bn of MDBs’ lending capacity over the next ten years by optimising their balance sheets and taking more risks,” the summit’s final statement. The final summit document called for each dollar of lending by development banks to be matched by at least one dollar of private finance, which analysts said should help international institutions to leverage an additional $100bn of private money in developing and emerging economies.
