WASHINGTON: Given big cuts in development aid by Europe and the United States, think tanks and other groups are urging the World Bank to reduce the equity-to-lending ratio of its main lending arm to free up billions in additional lending capacity.
Reducing the equity to lending ratio of the International Bank for Reconstruction and Development to 17% from 18% would allow the bank to boost its lending capacity by US$30bil to US$40bil without burdening taxpayers or shareholders, or jeopardising its capital reserves, said Eric Pelofsky, vice-president of the Rockefeller Foundation.
