Multilateral banks set to support global economic recovery

Leading Multilateral Development Banks (MDBs) and the International Monetary Fund met last week at the European Investment Bank in Luxembourg, mapping out their plans to support a sustainable global recovery and agreed that the Copenhagen Accord is an opportunity for action to finance measures to combat climate change.

On the global economy, they noted signs of recovery and agreed enhanced cooperation among the MDBs and the IMF played an important role in preventing a wider systemic crisis. They concluded the global economy remains fragile and MDBs will need to continue to play a counter-cyclical role in 2010. In this context they welcomed the agreements on capital increases of the ADB, EIB and IADB and looked forward to the conclusion of negotiations on replenishing resources of the AfDB, EBRD and the World Bank Group.

Beyond the immediate demand of responding to the crisis, the MDBs remain focused on crisis prevention, supporting sustainable growth and development and, in particular, the need to combat climate change.

Following on from their joint statement in December, the MDBs and IMF welcome the commitment of developed countries as part of the Copenhagen Accord to provide additional fast track financing for developing countries of US$ 30 billion in the period 2010 - 12 and the pledge to mobilise US$ 100 billion by 2020 in order to help developing countries cope with the impacts of climate change and achieve the deep cuts in global emissions needed to hold the increase in global temperatures below 2 °C.

The MDBs reaffirm their readiness to provide technical support to the UN process and recognise the importance of a legally binding post-2012 international agreement on climate change being concluded as soon as possible. They look forward to progress being made in this regard at the talks this month and next in Bonn.

The heads of MDB meeting is a forum for the main international financial institutions to share views and set common objectives on key challenges such as climate change. It is held twice a year. The next meeting is due to take place in October 2010.

Read the article online at: https://www.worldcement.com/europe-cis/12042010/multilateral_banks_set_to_support_global_economic_recovery/