The World Bank has said it plans to increase its lending capacity to combat climate change and other global issues as part of its evolution roadmap. The bank, which stated this in a new report, also disclosed that it aims to shift its resources away from a country and project specific lending model it has used since its creation. Specifically, the bank said it will look at a capital increase, as well as changing its structure to provide more lending and financing tools like guarantees for private sector loans.
The roadmap states that providing lending for climate change, health care, food security and other issues will need a capital increase for its middleincome lending arm the International Bank for Reconstruction and Development. The World Bank’s roadmap would also offer higher statutory lending limits, lower equity-toloan requirements and callable capital, which is money that is pledged but not paid in by member governments. “The challenges the world is facing call for a massive step up in the international community’s support,” the bank said in the document.
“For the WBG to continue to play a central role in development and climate finance, it will need a concerted effort by both shareholders and management to step up WBG financing capacity,” it added. Last year, Janet Yellen, U.S. Treasury Secretary, called on the World Bank to fund investments to help middle income countries move away from coal power to renewable energy.
Newtelegraphng