In a major development, the World Bank Group has endorsed an ambitious package of measures that include a USD 13 billion increase in paid-in capital.
The decision came late on Saturday along with a series of internal reforms, and a set of policy measures that greatly strengthen the global poverty fighting institution's ability to scale up resources and deliver on its mission in areas of the world that need the most assistance.
The package approved by the Development Committee of the Board of Governors consists of USD 7.5 billion paid-in capital for International Bank for Reconstruction and Development (IBRD) and USD 5.5 billion paid-in capital for International Finance Commission (IFC), through both general and selective capital increases, a media statement said.
It also includes a USD 52.6 billion callable capital increase for the IBRD. The boost in capital will be augmented by a broad range of internal measures, including operational changes and effectiveness reforms, loan pricing measures, and other policy steps to create an even stronger World Bank Group.
"The capital package for the IBRD and the IFC agreed to today builds on the strong commitment of contributors to the IDA, as demonstrated in the IDA18 replenishment, the successful launch of IDA in the capital market, and strengthened MIGA financial capacity," the statement said.
Following the decision, the combined financing arms of the World Bank Group are expected to reach an average annual capacity of nearly USD 100 billion between fiscal 2019 and fiscal 2030, benefiting all Bank Group members across the income spectrum.
"Through the historic agreement endorsed today, our shareholders have clearly demonstrated a renewed confidence in global cooperation, and we greatly appreciate this strong support from our member countries," Kim said.
"This boost in capital was essential for us to advance our efforts to mobilise additional finance for development to meet the aspirations of the people we serve," he added.
The package endorsed by the Development Committee follows through on shareholders' commitment to the World Bank Group to better assist all client countries in addressing global challenges while deploying scaled-up assistance to areas that most need financing.
Across client groups, the World Bank Group will be able to support drivers of long-term sustainable growth, including investments in human capital and resilience, the statement said.
The package also puts forward a robust commitment by the World Bank Group to further strengthen its operational model and effectiveness, it said.