Strengthening the financing capacity of institutions of this type is one of the proposals of the Brazilian presidency of the G20

The MDBs (acronym in English for multilateral development banks) announced this Saturday (April 20, 2024) plans to increase lending capacity by US$300 billion to US$400 billion over the next 10 years for the public and private sector.

The presidents of the 10 financial institutions that make up the group (read more below) stated, in a statement, that the measure represents the “strengthening collaboration between organizations”. Here is the full text (PDF – 250 kB, in English).

The group makes up:

  • the IDB (Inter-American Development Bank), headed by Brazilian Ilan Goldfajn; It is
  • the NDB (New Development Bank, known as Banco dos Brics), led by former president Dilma Rousseff.

To achieve the financing target, multilateral banks committed to adopting the following actions:

  • offer a diverse set of innovative financial instruments to shareholders, development partners and capital markets;
  • provide more clarity on callable capital, which would help rating agencies better assess capital value;
  • continue to implement and report on the G20 Capital Adequacy Review (CAF) recommendations and related reforms.

[A iniciativa] it will also serve as a valuable contribution to the upcoming G20 agenda to transform MDBs into a ‘better, bigger and more effective’ system and in other forums”the statement states.

The banks also announced joint measures to boost the fight against climate change; strengthen collaboration and co-financing at national level; catalyze private sector mobilization and improve development effectiveness and impact.

The goals were presented after a retreat at the headquarters of the IDB (Inter-American Development Bank), headed by Brazilian Ilan Goldfajn, in Washington DC, in the United States. The Inter-American Development Bank currently holds the rotating presidency of the group.

Strengthening the lending capacity of multilateral banks is one of the proposals of the Brazilian presidency of the G20. The reform of these institutions was the theme of the 2nd meeting of the group’s Financial Track, held on April 17 and 18, in Washington DC

In his speech at the meeting, Minister of Finance, Fernando Haddad, defended the strengthening of multilateral banks. He said that these organizations need to improve their capacity to expand credit to countries. “A substantial medium-term reform agenda remains to be implemented”he stated.

Multilateral Development Banks

The following financial institutions are part of the MDBs:

  • AfDB (African Development Bank);
  • ADB (Asian Development Bank);
  • AIIB (Asian Infrastructure Investment Bank);
  • CEB (Council of Europe Development Bank);
  • EBRD (European Bank for Reconstruction and Development);
  • EIB (European Investment Bank);
  • IDB (Inter-American Development Bank);
  • IsDB (Islamic Development Bank);
  • NDB (New Development Bank), known as the BRICS Bank. The institution is currently chaired by former president Dilma Rousseff; It is
  • World Bank.


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