WASHINGTON, June 23, 2023 – The World Bank Group and Asian Infrastructure Investment Bank (AIIB) have been working together to address the G20 Capital Adequacy Framework Working Group recommendations for Multilateral Development Banks to expand their use of financial innovation to provide additional lending capacity.
The proposal would utilize AIIB’s capital surplus to issue $1 billion guarantees against sovereign backed loans made by the World Bank Group’s International Bank for Reconstruction and Development (IBRD), which would provide relief against capital constraints, enabling IBRD to provide fresh lending, as well as diversifying and enhancing AIIB’s portfolio, which would in turn enable it to increase lending to low-income borrowers.
This proposal is subject to the respective approval process of both institutions.
Contact:
In Washington: Marcela Sánchez-Bender, +1-202-413-4836, msanchezbender@worldbankgroup.org
