Leaders Say Working To Deliver Effective MDBs For 21st Century
The G20 New Delhi Leaders’ Declaration called for reforms in international financial institutions. The declaration endorsed the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAFs) and called for its ambitious implementation, within multilateral development banks’ (MDBs’) own governance frameworks.
“The 21st century also requires an international development finance system that is fit for purpose, including for the scale of need and depth of the shocks facing developing countries, in particular the poorest and most vulnerable.” the Delhi Declaration noted.
“We are working to deliver better, bigger, and more effective MDBs by enhancing operating models, improving responsiveness and accessibility, and substantially increasing financing capacity to maximise development impact. Stronger MDBs will be important to our efforts to mobilise financing from all sources for a quantum jump from billions to trillions of dollars for development.” the Grouping further said, adding “We remain committed to pursuing ambitious efforts to evolve and strengthen MDBs to address the global challenges of the 21st century with a continued focus on addressing the development needs of low- and middle-income countries.”
The G20 said that it endorses the G20 Roadmap for Implementing the Recommendations of the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAFs) and calls for its ambitious implementation, within MDBs’ own governance frameworks while safeguarding their long-term financial sustainability, robust credit ratings and preferred creditor status.
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The group also took note of the Capital Adequacy Framework (CAF) that was set up under the 2021 G20 Italian. It said that “CAF measures, including those under implementation and consideration, could potentially yield additional lending headroom of approximately $200 billion over the next decade.”
On global debt vulnerabilities, G20 leaders convened in New Delhi and reaffirmed their position, which is consistent with the statements made in Bali last year. They called for “continued discussion on policy-related issues linked to the implementation of the Common Framework.”
“Beyond the Common Framework, we welcome all efforts for timely resolution of the debt situation of Sri Lanka, including the formation of the official creditor committee, and we call for the resolution as soon as possible,” the Declaration noted.
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