BRUSSELS, Aug 21 (Reuters Breakingviews) - To step up the fight against climate change, World Bank President Ajay Banga wants to overhaul the lender’s balance sheet without overturning its credit rating.
Earlier this year, the World Bank pledged $50 billion over 10 years via changes to how it manages its equity to loan ratio.
Such backing has been used before, for example by the UK to fund $1 billion of World Bank projects in India.
The central banks would hold those bonds as liquid reserves, while the World Bank could use the SDRs for financing its operations.
All of these options are more complicated than if the World Bank’s shareholders simply increased its paid-in capital outright.
Persons:
Ajay Banga, Janet Yellen, Lawrence Summers, N.K, Singh, Joe Biden, Yellen, ”, Guarantors, Brad Setser, Stephen Paduano, George Hay, Francesco Guerrera, Streisand Neto
Organizations:
Reuters, World, Treasury, World Bank, Reuters Graphics, Mastercard, Citigroup, AAA, U.S, Bank, London School of Economics, International Monetary Fund, European Union, U.S ., Thomson
Locations:
BRUSSELS, U.S, Asia, Banga, India, Japan, China, European, Marrakech, Singh