World Bank [to 2 January 2016]

World Bank [to 2 January 2016]
http://www.worldbank.org/en/news/all
[We generally limit coverage to regional and global level initiatives, recognizing that a number of country-level announcements are added each week]

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Statement by World Bank Group President on Declaration of End of Ebola Transmission in Guinea
WASHINGTON, December 29, 2015—World Bank Group President Jim Yong Kim issued the following statement on today’s announcement declaring the end of Ebola transmission in Guinea. “My colleagues and…
Date: December 29, 2015 Type: Press Release

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Development Banks Working Together to Optimize Balance Sheets
WASHINGTON, December 22, 2015 – The African Development Bank (AfDB), the Inter-American Development Bank (IADB) and the International Bank for Reconstruction and Development (IBRD) have approved an innovative framework agreement for an exchange of sovereign exposures that will collectively optimize their balance sheets for greater development effectiveness.

The sovereign exposure exchange agreement is a risk management tool collaboratively developed by the major Multilateral Development Banks (MDBs). This initiative was launched in October 2013 by the World Bank Group’s International Bank for Reconstruction and Development (IBRD) and endorsed by the MDB heads following a meeting of the G8 Ministers of Finance.

Unlike commercial financial institutions, which diversify their loan portfolio across thousands, and sometimes millions, of borrowers, the MDBs lend to their sovereign shareholders. The resulting asset concentration reflects the strength of the relationship between MDBs and their borrowers, but it also requires MDBs to hold additional capital.

Exchanging exposures between MDBs greatly enhances their flexibility and efficiency in capital management. In the past, MDBs have managed their capital concentration risks mainly through reducing or limiting exposure in countries where lending volumes were especially high…