The World Bank is seeking to block the release of a report prepared for the Group of 20 major economies that calls for lowering the bank’s capital requirements.
The independent report is due to be released on the sidelines of a meeting of G20 finance officials in Indonesia this week. The World Bank has long rejected any moves to tweak its strict capital requirements, saying it would weaken its standing in capital markets and jeopardize its AAA rating.
According to a report prepared for the G20 summit in Indonesia, the World Bank and other development banks could lend up to $1 trillion if they tweaked their capital ratios. The World Bank has long rejected any moves to tweak its strict capital requirements. A World Bank spokesperson said the institution was “assessing” the report’s recommendations.