IDB report sees remote chance of call on emergency capital

The Inter-American Development Bank on Friday said its shareholders viewed callable capital, the emergency capital pledged by governments but not paid in, as legally binding, but concluded there was a remote chance it would ever be needed. The bank said it conducted reverse stress tests that showed all its shareholders considered obligations for callable capital legally binding, but a call on the emergency capital remained a "highly remote scenario."

IDB said its senior management was confident that credit rating agencies would find the analysis useful in assessing the value of callable capital. The study is part of a major push by the IDB and other multilateral banks to expand the resources available to help poor countries fight climate change.

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