Janet Yellen: Reforming World Bank will provide $50 billion in ‎additional loans

US Treasury Secretary Janet Yellen said that reforming the World Bank would allow it to grant additional loans worth $50 billion to countries that need them over ten years.

Yellen explained, in an interview with AFP, conducted before the start of the spring meetings of the World Bank and the International Monetary Fund, starting Monday, that the reform will enable the World Bank to “expand its financial capacity.”

She added that the amendments “may lead to an additional lending capacity of $50 billion over the next decade, which is a major increase in resources,” noting that this would represent “a 20% increase in the level of sustainable lending for the International Bank for Reconstruction and Development,” branching out. About the International Bank

She stated that announcements in this regard will be issued next week during the spring meetings of the two financial institutions

The reform of the World Bank began in October, prompted by some member states, led by the United States, and the aim is to enable the institution that emerged nearly eighty years ago from the “Bretton Woods” conference in July 1944 at the end of World War II, to better respond to the needs of countries. development in terms of financing

Irrespective of the value of the amounts involved in reform, Yellen pointed out that the World Bank’s mission will be updated, “so that in addition to strengthening resilience to climate change, epidemics and conflicts.”

She stressed that “these challenges are not separate or conflicting, but rather interdependent so that they cannot be separated.”

It is expected, according to Yellen, that another announcement will be issued during the spring meetings of the two institutions, which stipulates “updating the bank’s business model to direct it towards the goals that we set.”

And she continued, “This includes a set of issues,” including “integrating international challenges into diagnostic tools, partnership strategies with countries or a framework aimed at results, and creating more incentives to mobilize national and private capital.”

She said that it is “the beginning of a reform mechanism,” expressing her hope that other mechanisms will be adopted “by the end of the year,” with announcements issued in this regard “during the upcoming meetings of the Group of Twenty and the annual meeting of the International Monetary Fund and the World Bank in Morocco” next fall.