US Treasury head urges new World Bank chief to raise private capital for development

ISTANBUL

US Treasury Secretary Janet Yellen urged Ajay Banga, the new president of the World Bank, to continue raising private capital for global development.

Yellen, during her meeting with Banga, asked him to continue implementing the recommendations of the G-20 Capital Adequacy Framework review in order to get the most out of the World Bank’s balance sheet, a Treasury Department statement said.

She also urged him to continue “improving and increasing the amount of private capital mobilized for our shared global development objectives and to refine the operating model to increase the responsiveness and agility of the bank.”

The US Treasury head also underlined the significance of the World Bank working more closely with its sister development banks.

International Finance Corporation, Multilateral Investment Guarantee Agency, and International Centre for Settlement of Investment Disputes are sister organizations that support the World Bank’s activities through specific programs.

Yellen, in addition, stressed the need to support the poorest of the World Bank’s member countries as they continue to face multiple crises, such as global macroeconomic hurdles caused by Russia’s war on Ukraine.

While Banga was the only nominee to become the 14th president of the World Bank, the international financial institution announced in early May that its executive directors selected him as the new president for a five-year term to begin Friday.

• US Treasury Secretary Janet Yellen
• World Bank
• World Bank president Ajay Banga