The reform of the World Bank should allow it to lend an additional 50 billion dollars over ten years to countries in need, US Treasury Secretary Janet Yellen told AFP in an exclusive interview.
Thanks to this development, the World Bank “expands its financial capacity,” said Joe Biden’s Minister of Economy and Finance, while the spring meetings of the IMF and the World Bank were taking place this Monday in Washington.
The announcements will be made next week at the spring meetings of the International Monetary Fund and the World Bank, he said.
This reform of the World Bank was launched in October, at the request of certain member countries, in particular the United States. Almost 80 years old, the institution, resulting from the Bretton Woods conference of July 1944, at the end of the Second World War, must better respond to the financing needs of developing countries.
World Bank “Building Resilience”
And beyond the amounts, the World Bank will see its mission updated, “to add the strengthening of resilience in the face of climate change, pandemics, conflicts,” stressed Janet Yellen.
“This includes a variety of things”, the Minister detailed, referring to “the integration of global challenges in diagnostic tools, country partnership strategies or the results-oriented framework and the creation of more incentives for capital mobilization national and private. “.
This is the “beginning of a reform process”, greeted Janet Yellen, who hopes to see others “by the end of the year”, with announcements “at the next meetings of the G20 and the annual meeting of the IMF and the World Bank in Morocco”. the next fall.
The other development banks should then also start their transformation.
Change of president at the end of June
In parallel, the World Bank will also change its president at the end of June, after the resignation of David Malpass. The lack of consideration of climate change has often been criticized.
The name of his successor should not be known until early May. However, there is only one candidate in the race: Ajay Banga, 63, an Indian-American, nominated by the United States. He remarkably highlighted his experience in public-private projects.
Janet Yellen praised the “solid foundation” provided by David Malpass.
Sovereign debt of poor countries
Another important issue that will be discussed in Washington next week: the restructuring of the sovereign debt of poor countries, which had borrowed to meet the expenses related to Covid-19, and now see interest rates increase with the rise in interest rates. .
“There will be a global roundtable meeting on sovereign debt next week,” Janet Yellen commented.
Among the main creditors is China, which is accused of lacking the will to successfully restructure these debts. However, “we have seen some movement from China regarding participation in the restructuring of Sri Lanka’s debt, which is a sign of hope,” greeted the Treasury secretary.
Economic support for Ukraine will also be discussed.
Source: BFM TV
