The World Bank Group has announced that 11 nations have pledged a total of $11 billion to the Portfolio Guarantee Platform, hybrid capital mechanism, and the new Livable Planet Fund. These initiatives are designed to support sustainable development, tackle climate change, and foster shared prosperity in developing countries.
According to a press release by the World Bank Group, Belgium, France, Japan, and the United States have pledged funds for the Portfolio Guarantee Platform. Simultaneously, Denmark, Germany, Italy, Latvia, the Netherlands, Norway, and the United Kingdom have committed to hybrid capital. These commitments could generate up to $70 billion in urgently required funds to address cross-border challenges and advance development goals.
Ajay Banga, World Bank Group president said in a press release by the World Bank Group: "We worked hard to develop these new financial instruments that boost our lending capacity, multiply donor funds, and ultimately allow us to improve the lives of more people." He added: "The generosity of these countries is both an endorsement of the progress we have made to reform the Bank and a sign of their shared commitment to development globally."
As part of its Capital Adequacy Framework review process, according to another press release by the World Bank Group. The institution has implemented reforms and introduced financial instruments such as adjusting the loan-to-equity ratio and increasing bilateral guarantee limit. Additionally it has introduced hybrid capital while also developing the Portfolio Guarantee Platform and launching the Livable Planet Fund.
The World Bank Group is comprised of five institutions working towards reducing poverty and promoting shared prosperity in developing countries. With 189 member countries and staff from over 170 nations worldwide its mission is tackling global crises such as climate change pandemics and economic fragility through implementing development strategies as per information on their About webpage.