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Yellen's Roundtable Discussion on Evolving Development Banks

U.S. Treasury Secretary Janet Yellen will host a roundtable discussion focusing on further steps for the evolution of the World Bank and other development lenders. The aim is to address climate change and other global crises beyond the World Bank's $5 billion annual lending expansion.

Janet Yellen
Janet Yellen 

Meeting Finance Ministers at Spring Meetings

The discussion will be held on the sidelines of the World Bank and International Monetary Fund Spring Meetings. Finance ministers from major shareholders and borrowing countries will gather to discuss ways to maintain momentum in evolving multilateral development banks to meet current challenges better.

World Bank's Proposed Balance Sheet Changes

The World Bank has proposed balance sheet changes allowing it to lend an additional $50 billion over ten years while maintaining its AAA credit rating. This step is widely expected to be adopted by bank shareholders this week.

Downpayment on Reforms for Development Banks

A U.S. Treasury official referred to the proposed changes as a "downpayment" on the reforms for the World Bank and other multilateral development banks, representing an early opportunity to get the process rolling.

Harnessing Private Capital and Public-Private Partnerships

Yellen's discussions will also explore operational changes aimed at harnessing more private capital and creating public-private partnerships to address climate change, pandemic preparedness, and economic fragility.

Push for More Reforms and Financial Capacity

The U.S. Treasury official said Yellen would continue to push for more reforms in the operational model and will explore different ways to use the recommendations from the capital adequacy framework to open up more capacity using the current balance sheet. Yellen hopes to lay a roadmap for further progress on the banks' operational model and financial capacity.