- The UK pledges £100m to the World Bank to deliver £1bn of support over the next 10 years.
- Minister Mitchell, the UK's World Bank President, will announce the UK's contribution at the Spring Meetings in Washington DC today (Wednesday 17 April).
- UK support will help developing countries tackle urgent development challenges such as climate change, food insecurity, pandemics and poverty.
The UK today (Wednesday 17 April) announced a £100m hybrid capital contribution to strengthen the World Bank's International Bank for Reconstruction and Development (IBRD) to tackle some of the world's most pressing challenges over the next decade. It will help you tackle.
The World Bank's financial model means that for every £1 received, it can lend £10. The UK's £100m contribution will enable a tenfold increase in financing to £1bn over the next decade to tackle issues such as climate change, food insecurity, pandemics and poverty, helping to meet the UN Sustainable Development Goals. Contribute to the achievement.
Hybrid capital is a financial innovation that allows World Bank shareholders, including the UK, to unilaterally and voluntarily contribute new funds at any time, significantly expanding the IBRD's lending capacity.
Andrew Mitchell, Deputy Foreign Secretary and Minister for Development and Africa, said:
Our commitment to invest £100m in hybrid capital will unlock £1bn of additional funding capacity over the next 10 years, highlighting the need for urgent action to have a real impact. recognizing.
More than half of low-income countries are at high risk of debt crisis and lack access to affordable finance for economic growth. At the same time, significantly more funding is needed to reorient the United Nations Sustainable Development Goals and tackle global challenges such as climate change.
The UK will be one of the first countries to contribute hybrid capital to the World Bank, working closely with our G7 partners to achieve our shared goal of building a bigger and better World Bank.
As set out in the UK White Paper, the UK will also push for reforms to multilateral development banks (MDBs), including the World Bank, to expand existing capital and make it easier for low-income countries to access the finance they need. We are requesting that this be implemented. MDBs provide around £120bn each year in development support and tackling climate change.
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- Hybrid capital combines features of both debt and equity. This takes the form of a loan with no specified maturity date, pays a coupon (annual interest payment), and typically has no voting rights (i.e. does not affect the MDB's shareholding).
- All 189 World Bank member countries, including the UK, are shareholders. A complete list is available at www.worldbank.org/en/about/leadership/members.
