The Inter-American Development Bank (IDB) said the world’s 10 multilateral banks have pledged to take action in five key areas. They have also pledged to finance an additional $300 billion to $400 billion in the next 10 years.
Reuters reported that multilateral organizations have made this decision in response to long-standing calls for easier lending to developing countries. In particular, countries that are struggling to cope with the impacts of climate change or that are threatened by high policy interest rates around the world are called upon to lend more.
IDB President Ilan Goldfajn said, ‘Together, we can achieve more. Our impact will be felt on a larger scale.’
The multilateral institutions that have pledged this additional financing are the World Bank Group, the New Development Bank, the Asian Infrastructure Investment Bank, the European Investment Bank, and the African Development Bank.
IDB said in a statement that they will increase their financing capacity by providing innovative financial services. Along with this, they also have a plan to channel the Special Drawing Rights (SDR) of the International Monetary Fund (IMF) through the Multilateral Development Bank.
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In addition, multilateral banks have pledged to take more initiatives to tackle the effects of climate change. They want to work together to tackle the effects of climate change by creating a common approach. Apart from this, they will also provide information on climate change financing.
It has been informed that work will also be done to increase cooperation between countries, joint financing and utilization of private sector resources, and to increase the effectiveness and impact of development activities.
