(MENAFN- KNN India) New Delhi, Nov 22 (KNN) The Asian Development Bank (ADB) has secured the required votes from its Board of Governors to ratify a major amendment to its founding charter, removing the lending limitation stipulated in Article 12.1.

The reform will enable the Bank to increase annual lending by 50 percent to more than USD 36 billion, significantly expanding support for developing member countries across Asia and the Pacific.

“Removing this limitation means ADB can now move forward with an ambitious plan to increase our annual financing commitments without placing any burden on our shareholders for a general capital increase, something ADB has not requested since 2009,” said ADB President Masato Kanda.

This marks the first amendment to the ADB Charter since the Bank's establishment in 1966.

The change will take effect three months after ADB formally notifies its members that the amendment has been adopted.

Amendments to the charter require approval by two-thirds of the Governors, representing at least three-fourths of total voting power. The threshold was reached on 14 November with support from 61 members, though voting remains open until 30 November.

The charter amendment is part of broader efforts to optimise the use of shareholder capital and strengthen ADB's capacity to respond to the region's development needs.

Kanda noted that the enhanced lending ability“is not only about bigger numbers, but what those numbers make possible,” citing opportunities to reduce poverty, expand youth employment prospects, and strengthen community resilience.

According to ADB's Capital Utilisation Plan, annual financing commitments are expected to rise from USD 24 billion in 2024 to more than USD 36 billion by 2034.

The increased resources are expected to play a central role in meeting ADB's 2030 targets, including quadrupling private sector financing to USD 13 billion annually and ensuring that 40 percent of sovereign operations directly support private-sector development.

(KNN Bureau)

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