TBILISI, Georgia, May 3. It is necessary to give much more value to the revocable capital, Undersecretary for International Development Strategy, US Department of the Treasury, Alexia Latortue, said, Trend reports.
She made the statement during the panel discussion on ADB's Evolution Roadmap: Update to Strategy 2030 at the Asian Development Bank's (ADB) annual meeting in Tbilisi.
Callable capital is a part of a bank's capital formed from shares subscribed to by shareholders but payable only upon the occurrence of certain conditions; it acts as a kind of guarantee fund designed to cover the bank's liabilities.
According to Latortue, the development program is also about shareholders developing themselves, including in terms of risk assumptions.
"Collaboration is not only about increasing co-financing; it is also about revocable capital. There is a real possibility that we can add much more value to the revocable capital embedded in the financing model of the International Development Banks (IDBs). But if the Multilateral Development Banks (MDBs) go it alone, nothing will happen," she said.
The ministerial assistant added that credit rating agencies are monitoring the move, and they have already gone on record to say that it is the MDBs as a group that are paying more attention to this.
To note, the theme of the 57th Annual Meeting, to be held May 2–5, is "Bridge to the Future."
The first meeting of the Board of Governors will be held on May 4. The opening ceremony will mark the official start of the annual meeting. It is an event that will be attended by distinguished guests from the host country. ADB President Masatsugu Asakawa and Lasha Khutsishvili, Minister of Finance of Georgia and Chairman of the ADB Board of Governors, will make statements.
The annual meeting is an opportunity for ADB Governors to address development issues and challenges facing the Asia-Pacific region. Several thousand participants regularly join the meeting, including finance ministers, central bank governors, senior government officials, representatives of the private sector, international and civil society organizations, youth, academia, and the media.
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