World Bank shareholders endorse capital increase plan

Washington April 22 (IANS) The World Bank has said its shareholders endorsed a capital increase package a series of internal reforms and a set of policy measures to strengthen the international lender s capabilities.

The $13 billion capital increase package includes $7.5 billion of paid-in capital for the International Bank for Reconstruction and Development (IBRD) the group s primary lending arm and $5.5 billion for the International Finance Corporation (IFC) the group s private sector lending arm said the World Bank in a statement on Saturday Xinhua reported.

World Bank shareholders also endorsed a $52.6 billion callable capital increase for IBRD the statement said.

"Through the historic agreement endorsed today our shareholders have clearly demonstrated a renewed confidence in global cooperation " World Bank Group President Jim Yong Kim said.

"This capital package allows for greater responsiveness to risks to global stability and security particularly in poorer countries and fragile states " Kim added.

Following the capital increase plan announced Saturday the combined financing arms of the World Bank are expected to reach an average annual capacity of nearly $100 billion between fiscal year 2019 and fiscal year 2030 said the World Bank.

Kim said at a press briefing this week that the capital increase package doesn t target changes of loans to any specific country.

"It s about how we think about income levels and how the World Bank Group can continue to be a partner and to support all of our member countries who are still clients " he argued.

He said that the multilateral lender would increase lending to lower middle-income countries over time.

--IANS
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