According to an ‘evolution roadmap,’ the World Bank is seeking to significantly increase its lending capacity to address climate change and other global crises and will negotiate with shareholders ahead of April meetings on proposals that include a capital increase and new lending tools.
The roadmap document, which was given to shareholder nations, is the first step in a negotiating process to change the mission and financial resources of the bank and move it away from the country- and project-specific lending model it has employed since its founding at the conclusion of World War Two.
The World Bank management aims to have specific proposals to change its mission, operating model and financial capacity ready for approval by the joint World Bank and International Monetary Fund Development Committee in October, according to the document.
A World Bank spokesman said that the document aimed to provide details on the scope, approach, and timetable for the evolution, with regular updates for shareholders and decisions later in the year.
The development lender will explore options like a potential new capital increase, changes to its capital structure to unlock more lending and new financing tools such as guarantees for private sector loans and other ways to mobilize more private capital, according to the document.
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