Billions of dollars expected to be raised in G20 Summit?
Reportedly a key point on the agenda of the G20 summit in the national capital will be strengthening multilateral
development banks, the success of which is likely to mobilize billions of dollars to fight poverty and save the
climate. Development banks are very important in the fight against poverty and climate change and in the
global economy. Whether any country is facing economic challenges or any disaster, such banks come
forward to provide loans to the needy countries. The process of strengthening multilateral development banks
was initiated in the G20's 2016 Action Plan, which directed banks to work through their 'boards' to strengthen
their books to avoid increases in risk or The quantum of loan can be increased without damaging the credit
rating.
Five years later, Italy, the then G20 chair, took the reform process forward by establishing the 'Capital
Adequacy Framework' for independent review of multilateral development banks. The ability of banks to
meet financial obligations is assessed through the 'Capital Adequacy Framework'. In their first meeting this
year under the chairmanship of India, G20 Finance Ministers and Central bank Governors recognized the
need for multilateral development banks given the scope and complexity of cross-data-border challenges. Along
with this, he stressed the need to develop such banks in view of their loan resources, knowledge support and
increase in demand to promote private investment.