Development banks can boost lending by $200 bln - Paris summit statement

expect an overall increase of 200 billion (dollars)of MDBs’ lending capacity over the next ten years by optimizing their balance sheets and taking more risks," the statement obtained by Reuters said. "If these reforms are implemented, MDBs may need more capital," it added.

Multilateral development banks are expected to unlock $200 billion in extra firepower by running their balance sheets more tightly and taking more risk, leaders meeting at a summit in Paris said in a statement.

Many of the around 40 leaders gathered in Paris voiced concerns that the World Bank and the International Monetary Fund were increasingly outdated for tackling challenges like climate change and post-COVID poor country debt burdens. "We ... expect an overall increase of 200 billion (dollars)of MDBs' lending capacity over the next ten years by optimizing their balance sheets and taking more risks," the statement obtained by Reuters said.

"If these reforms are implemented, MDBs may need more capital," it added. U.S. Treasury Secretary Janet Yellen said in Paris ahead of the summit that efforts to squeeze more lending from the development lenders had to be carried out before considering the possibility of capital increases.

The U.S. is the largest shareholder of the IMF and World Bank.