World Bank Expands Lending Amid Global Challenges

The World Bank has altered its lending guidelines to increase its lending capacity by an additional $30 billion over the next decade. This change, led by President Ajay Banga, involves lowering the equity-to-lending ratio to tackle global challenges like climate change and geopolitical tensions.

The World Bank has made a crucial decision to revise its internal lending guidelines, effectively increasing its capacity to lend an additional $30 billion over the next ten years. This decision was confirmed by World Bank President Ajay Banga to Reuters on Tuesday.

The International Bank for Reconstruction and Development, a key arm of the World Bank, will adjust its equity-to-lending ratio from 19% to 18%. This move is part of a broader strategy to take on slightly more risk and align with recommendations from an independent report meant for the Group of 20 (G20) major economies.

These policy changes add up to a $150 billion increase in lending capacity, addressing significant global issues like the war in Ukraine, rising violence in the Middle East, and large-scale government debt.

(With inputs from agencies.)