Malpass said the increase in financing capacity for the
International Bank for Reconstruction and Development (IBRD)
would come during the upcoming spring meetings of the World Bank
and the International Monetary Fund in Washington in April.
He said the World Bank had doubled its financing for global
public goods during his presidency, reaching $100 billion from
2020-2022, and was continually exploring options to further
increase its lending capacity.
In his remarks, Malpass underscored his concerns about
"unsustainable levels" of public debt in many developing
countries, with precise amounts and terms often unknown due to
non-disclosure clauses and collateralized debt deals.
More than half of the world’s poorest countries were in or
at high risk of debt distress, and their problems were mounting
given higher interest rates and inflation that were leading to
capital shortages, Malpass said.
As a result, governments needed to "plan for continued
financial stress," Malpass said, calling for further efforts by
developing countries to remove wasteful subsidies, improve
public procurement and broaden their tax base - all steps need
to attract urgently needed private sector capital.
The World Bank is also undertaking reforms - under pressure
from the United States and other key shareholders - to free up
more resources to help developing countries deal with climate
change and other big challenges.
Malpass gave no details on how the IBRD would increase its
lending capacity in the speech in Niger.
He told Reuters last month the bank could change its
internal lending guidelines to free up $4 billion in lending
capacity for the IBRD each year - or $40 billion over 10 years,
a sum that falls far short of recommendations made by an
independent panel to the Group of 20 major economies last year.
The IBRD in December also raised its sustainable annual
lending limit by $2 billion, beginning in fiscal 2024. Its
lending ceiling for fiscal 2022 was $37.5 billion.
(Reporting by Andrea Shalal, Editing by William Maclean)
(Adds quotes, details)
By Andrea Shalal
WASHINGTON, March 30 (Reuters) - The World Bank expects
to boost the financing capacity of its middle-income lending arm
by up to $50 billion over the next 10 years to help countries
deal with overlapping crises, World Bank President David Malpass
said on Thursday in Niamey, Niger.
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