World Bank acts to boost lending capacity by $30 billion over 10 years


FILE PHOTO: World Bank President Ajay Banga attends a Partnership for Global Infrastructure and Investment (PGII) event, on the first day of the G7 summit, in Savelletri, Italy, June 13, 2024. REUTERS/Louisa Gouliamaki/File Photo

WASHINGTON (Reuters) -The World Bank voted on Tuesday to change its internal lending guidelines, freeing up $30 billion in additional lending capacity over the next decade to help developing countries and emerging markets grapple with climate change and other global challenges, World Bank President Ajay Banga told Reuters NEXT.

Banga said the bank's International Bank for Reconstruction and Development (IBRD) arm would lower its equity-to-lending ratio by 1 percentage point to 18%, taking on a bit more risk, as it continues to implement reforms outlined in an independent report prepared for the Group of 20 (G20) major economies and demanded by its shareholders, including the United States.

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