(MENAFN) US Treasury Secretary Janet Yellen held a meeting with Ajay Banga, the newly appointed President of the World Bank, where she emphasized the importance of raising private capital for global development. In a statement issued by the Treasury Department, Yellen urged Banga to continue implementing the recommendations of the G-20 Capital Adequacy Framework review to optimize the World Bank's balance sheet. This strategic approach aims to maximize the impact of the bank's resources and enhance its ability to address global development challenges effectively.
Furthermore, Yellen called upon Banga to focus on improving and expanding the mobilization of private capital to advance shared global development objectives. She emphasized the need to refine the World Bank's operating model to enhance its responsiveness and agility. Yellen also highlighted the significance of fostering closer collaboration between the World Bank and its sister development banks, namely the International Finance Corporation, Multilateral Investment Guarantee Agency, and International Centre for Settlement of Investment Disputes. These organizations support the World Bank's activities through specific programs and initiatives.
Additionally, Yellen underscored the critical importance of supporting the poorest member countries of the World Bank as they navigate multiple crises, including the global macroeconomic challenges resulting from Russia's war on Ukraine. These countries require dedicated assistance and resources to overcome the various economic and social hurdles they face.
It is noteworthy that Ajay Banga was the sole nominee for the position of the 14th President of the World Bank. In early May, the international financial institution announced that its executive directors had selected Banga to assume the presidency for a five-year term, which commenced on Friday.
Yellen's meeting with Banga signifies the ongoing commitment of the United States to collaborate with the World Bank in mobilizing resources and implementing effective strategies to promote global development. The emphasis on private capital and close cooperation with sister development banks reflects a broader vision of leveraging diverse financial resources and fostering partnership to address the complex challenges faced by developing nations worldwide.
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