ADB Bank amends charter, sharply increases loan capital

VTV.vn - ADB removes fixed loan limit, creating great opportunities for Asian countries to access development capital.

Illustration photo.

After nearly six decades of operation, the Asian Development Bank (ADB) has just made one of the most landmark decisions since its establishment, which is to amend its charter to remove the fixed lending limit stipulated in Article 12.1.

The decision will enable ADB to increase its lending capacity to more than $36 billion per year by 2034 from the current $24 billion to support developing member countries in addressing pressing challenges.

Asia currently accounts for nearly 60% of global infrastructure investment needs. With the ADB amending its charter to remove the fixed lending limit, ADB members in the Asian region such as India, the Philippines, Indonesia, Vietnam... will have the opportunity to increase the scale of access to capital for infrastructure, digital transformation, energy transformation and private sector development.

This is a rare event in the history of multilateral financial institutions when an organization as large as the ADB expands its financing capacity without requiring an increase in charter capital from its shareholders.

With expanded resources, ADB sets ambitious targets for 2030, including quadrupling private sector financing (to $13 billion per year) and ensuring that 40% of public sector operations directly support private sector development.

The amendment to the charter will officially take effect three months after ADB notifies member countries.

Source: https://vtv.vn/ngan-hang-adb-sua-doi-dieu-le-tang-manh-von-cho-vay-10025111815080725.htm