Yellen: World Bank needs 'change'

US Treasury Secretary Janet Yellen, speaking at Mohammed VI Polytechnic University in Ben Guerir, Morocco, where she is attending the annual meetings of the International Monetary Fund (IMF) and the World Bank, evaluated the progress made in the efforts of multilateral development banks to reform.

Pointing out that the World Bank has begun working on principles for the use of concessional financing to support projects addressing climate change and other global challenges, Yellen also noted that the Bank is working on improved analytical and diagnostic tools, including development reports.

Yellen drew attention to the need for further efforts to equip World Bank staff to achieve the desired results, stating, "This will require internal process improvements that increase agility and accelerate decision-making without compromising quality, as well as a 'cultural change' that will accelerate private sector mobilization and responsible risk-taking."

REFORMS UNDER CONSIDERATION COULD INCREASE CAPACITY BY 200 BILLION DOLLARS

Emphasizing that significant progress has been made in increasing the financial capacity of multilateral development banks, Yellen reported that the reforms under consideration could add at least 200 billion dollars to new lending capacity.

Yellen expressed that World Bank executives are expected to pave the way for the issuance of hybrid capital and approve a portfolio guarantee platform that will provide a new way for shareholders to contribute to the bank's work.