WASHINGTON听–听US Treasury Secretary Janet听驰别濒濒别苍听on Wednesday will host a roundtable discussion on further steps to evolve the World听叠补苍办听and other听诲别惫别濒辞辫尘别苍迟听lenders to tackle climate change and other global crises beyond a $5 billion annual World听叠补苍办听lending expansion, the Treasury said.
The discussion on the sidelines of the World听叠补苍办听and International Monetary Fund听厂辫谤颈苍驳听惭别别迟颈苍驳蝉听will bring together finance ministers from major shareholders and borrowing countries that will cover “ways to maintain momentum to evolve the multilateral听诲别惫别濒辞辫尘别苍迟听banks to better meet current challenges,” the Treasury said in a statement.
The World听叠补苍办听has proposed聽聽that would quickly allow it to lend an additional $50 billion over 10 years while maintaining its top-tier AAA credit rating, a step聽that听产补苍办听shareholders are聽widely expected to聽补诲辞辫迟听this week.
US Treasury Undersecretary Jay Shambaugh said the reforms amounted to a “once in a generation transition” of the institutions, and called the World听叠补苍办‘s plans a “downpayment” on the reforms that would be deepened in time and spread to other multilateral听诲别惫别濒辞辫尘别苍迟听banks.
“This was the low-hanging fruit. These were the things we could accomplish in six months after the charge went to the听产补苍办,” he told an event hosted by the Brookings Instituti辞苍听辞苍听Monday. “We definitely don’t view that as a stopping point.”
Mr. Shambaugh said it was important聽to fix the听产补苍办s’ operational structure and incentives and ensure effective use of funds, noting that some of the听诲别惫别濒辞辫尘别苍迟听banks had “considerable room” on their balance sheets.
A senior Treasury official said Ms. Yellen would discuss changes aimed at harnessing more private capital and creating public-private partnerships to tackle climate change and other global problems such as pandemic preparedness and economic fragility.
The official said Ms. Yellen was hoping to lay out another roadmap to make more progress on the听产补苍办s’ operational models and financial capacity. – Reuters
