(MENAFN- Trend News Agency) TBILISI, Georgia, May 3. It is necessary togive much more value to the revocable capital, Undersecretary forInternational Development Strategy, US Department of the Treasury,Alexia Latortue, said, Trend reports.
She made the statement during the panel discussion on ADB'sEvolution Roadmap: Update to Strategy 2030 at the Asian DevelopmentBank's (ADB) annual meeting in Tbilisi.
Callable capital is a part of a bank's capital formed fromshares subscribed to by shareholders but payable only upon theoccurrence of certain conditions; it acts as a kind of guaranteefund designed to cover the bank's liabilities.
According to Latortue, the development program is also aboutshareholders developing themselves, including in terms of riskassumptions.
"Collaboration is not only about increasing co-financing; it isalso about revocable capital. There is a real possibility that wecan add much more value to the revocable capital embedded in thefinancing model of the International Development Banks (IDBs). Butif the Multilateral Development Banks (MDBs) go it alone, nothingwill happen," she said.
The ministerial assistant added that credit rating agencies aremonitoring the move, and they have already gone on record to saythat it is the MDBs as a group that are paying more attention tothis.
To note, the theme of the 57th Annual Meeting, to be held May2–5, is "Bridge to the Future."
The first meeting of the Board of Governors will be held on May4. The opening ceremony will mark the official start of the annualmeeting. It is an event that will be attended by distinguishedguests from the host country. ADB President Masatsugu Asakawa andLasha Khutsishvili, Minister of Finance of Georgia and Chairman ofthe ADB Board of Governors, will make statements.
The annual meeting is an opportunity for ADB Governors toaddress development issues and challenges facing the Asia-Pacificregion. Several thousand participants regularly join the meeting,including finance ministers, central bank governors, seniorgovernment officials, representatives of the private sector,international and civil society organizations, youth, academia, andthe media.
Stay up-to-date with more news on Trend NewsAgency's WhatsApp channel
MENAFN03052024000187011040ID1108170791
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.