Leaders of major multilateral development banks, including the EU's European Investment Bank, have agreed to deepen cooperation on mobilising private finance, boosting job creation and backing joint work on areas such as water systems and critical minerals.
The heads of the banks met on the sidelines of the World Bank Group–International Monetary Fund Spring Meetings, and said current global developments were already being felt through higher energy costs, supply chain disruptions and tighter financial conditions, according to a statement issued after a meeting in Washington DC on Friday, as cited by the EIB.
“MDBs are working more closely than ever to support our members and clients through a complex and evolving global environment,” Masato Kanda, President of the Asian Development Bank and chair of the group, said.
The leaders stated they were ready to provide timely support to help countries manage risks, maintain macroeconomic stability and protect vulnerable populations.
They also reaffirmed plans to work together more closely on private sector development, job creation, infrastructure and long-term growth.
New working group on private finance
A working group will be set up to advance approaches designed to draw in private capital, including “originate-to-distribute/share” models — where lenders package and share loans with other investors to expand financing capacity, the statement said.
The group also backed efforts to increase transparency of credit risks in emerging markets through the Global Emerging Markets (GEMs) consortium, and to scale up local currency financing to reduce exchange rate risks.
The banks said they are strengthening collaboration on critical minerals, and launched Water Forward, described as a global initiative to develop “investable, scalable water systems”.
They also agreed a common “Value for Money” framework for procurement — the process of buying goods and services for projects — which each bank will adapt to its own operations.
The group includes the African Development Bank, Asian Development Bank, European Investment Bank, World Bank Group and others, with the International Monetary Fund also participating in discussions.
