Bengaluru: During India's G20 presidency, Finance Minister Nirmala Sitharaman highlighted securing climate finance as a key focus and called for the World Bank's vision to be sharpened to focus on middle-income countries on Wednesday.
The minister suggested that multilateral development banks (MDBs) like the World Bank and the International Monetary Fund (IMF) could play a significant role in incentivizing private capital, de-risking instruments, and providing greater concessional finance during a meeting in the national capital with World Bank chief David Malpass. As a crucial component for developing nations to take on the challenge of addressing climate change issues, India is experiencing a lack of finance and the necessary support from global agencies and rich nations.
Following Sitharaman's meeting with Malpass, the finance ministry tweeted, "The two leaders discussed, among other issues, India's G20 Presidency & priorities, capital adequacy frameworks recommendations of MDBs (multilateral development banks), addressing debt vulnerabilities, evolution of the WBG (World Bank Group), and their engagement with India."
The minister argued that the revised capital adequacy framework can increase development financing by freeing up capital for multilateral development banks like the ADB and others.
The issue has already been the subject of recommendations from an expert panel.
Beginning on Thursday, Sitharaman will be in Bengaluru for the first meeting of G20 finance ministers and governors of central banks.