IMF approves members to channel reserve assets to MDBs


Officials estimate the move would unlock as much as US$80bil of new MDB lending globally. — Reuters

WASHINGTON: The International Monetary Fund (IMF) says its executive board has approved members to use their Special Drawing Rights (SDRs), or IMF reserve assets, to acquire so called hybrid capital bonds issued by multilateral development banks (MDBs).

The Inter-American Development Bank (IDB) and the African Development Bank (AfDB), which had both championed the idea, welcomed the move, with officials estimating it would unlock as much as US$80bil of new MDB lending globally.

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