FM Nirmala Sitharaman meets MDBs ahead of Morocco summit next week

Finance Minister Nirmala Sitharaman on Friday chaired a meeting with the heads of Multilateral Development Banks and the co-conveners of the G20 Independent Expert Group for strengthening MDBs, NK Singh and Lawrence Summers.

Under its key priority of strengthening MDBs to address global challenges of the 21st century, the G20 India Presidency had constituted the G20 Independent Expert Group on Strengthening MDBs. “Volume 2 of the report of this Expert Group will be released post the fourth G20 finance ministers and central bank governors (FMCBG) meeting in Marrakech, Morocco, on 12-13 October 2023,” the finance ministry said in a tweet.

The virtual meeting was attended by Ajay Banga, President, World Bank; Mastasugu Asakawa, President, Asian Development Bank; Danny Alexander, Vice-President, Asian Infrastructure Investment Bank; and Dilma Rouseff, President, New Development Bank, among others.

Former US treasury secretary Summers had told Business Standard earlier that volume two of the expert group’s report would detail the finance modalities, with the fundamental goal of tripling lending by 2030. “We need these institutions to become not just bigger but also bolder and better. They have to be outward-looking and consider a full array of instruments such as derivatives, mutual funds, insurance, and guarantees,” he had said.

During the Leaders Summit in New Delhi, G20 Leaders emphasised the need for reforms to deliver better, bigger, and more effective MDBs.

The G20 New Delhi Leader’s declaration said, “We also call for a regular review of the progress of implementation on a rolling basis, including through engaging with MDBs, subject experts, and shareholders. We commend the MDBs for their progress in implementing the CAF recommendations, especially with respect to adapting definitions of risk appetite and financial innovation.”