World Bank won’t give up top credit rating to boost climate lending -Malpass

WASHINGTON, Jan. 10 (Reuters) – World Bank President David Malpass said on Tuesday that the lender is not considering relinquishing its top credit rating as a means of expanding lending as it revamps its business model to address climate change and other global address crises. .

“The triple-A rating is very important to the financial stability of the bank, and is also a huge benefit to the customers as we pass on the benefits of that good credit rating to them through our low borrowing costs,” Malpass told a briefing. about the latest economic forecasts from the World Bank.

Some nonprofits have urged the bank to accept a downgraded credit rating, arguing that this would free up significant amounts of funding to help developing countries invest in clean energy and climate adaptation – and address other pressing global needs such as pandemic preparedness and food security.

The World Bank is discussing an “evolution roadmap” with its board this week to meet calls from the United States and other shareholders to massively expand its role in climate finance and elsewhere. Malpass told reporters the talks went well.

The bank is exploring several other ways to expand its balance sheet, including using callable capital – funds pledged but not deposited by governments holding shares – as well as new forms of leverage, capital increases or larger contributions to the fund of the bank for the poorest countries. Malpas said.

Reporting by David Lawder; Edited by Kevin Liffey

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