Development banks pledge support in 1st Manila meeting

MANILA, Philippines — The heads of 10 multilateral development banks (MDBs) agreed to expand their financing capacity to help developing countries like the Philippines weather mounting economic pressures from geopolitical conflicts and increasingly severe climate disasters.

In their first-ever meeting in the country on Saturday, the bank leaders pledged to strengthen cooperation in mobilizing private capital and financing their shared development priorities, including job creation, climate action, water security, critical minerals and artificial intelligence.

Efficiency

Manila-based Asian Development Bank (ADB), which chaired the meeting, said it welcomed efforts to improve efficiency across the institutions and maximize the impact of their financing.

READ: Development banks mobilize funding to cushion war impact

The banks collectively hold nearly $1.5 trillion in development assets, including loans, equity investments and guarantees, backed by $163 billion in paid-in capital from shareholders. That translates to more than $9 in development assets for every $1 contributed by shareholders.

The group comprises the African Development Bank Group, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank Group, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, World Bank Group and ADB. The International Monetary Fund participates in the group.

In a joint statement, the development banks reaffirmed their readiness to provide timely financing and analytical support to protect vulnerable populations, sustain job creation and support long-term economic growth.

They acknowledged that geopolitical conflicts, natural disasters, difficult economic conditions and limited fiscal space were weighing on developing countries.

The statement followed a pledge in May to help countries manage the economic fallout from the US-Iran war, including disruptions to energy and fertilizer supplies and trade routes. The banks warned that these shocks could spill over into inflation, food security, employment, government finances, external balances and financing conditions.

‘Protect dev’t gains’

“Conflict, economic uncertainty, high debt, inflation and disasters are placing growing pressure on our members and making development harder,” ADB president Masato Kanda said in a statement.

“Our meeting in Manila was an opportunity to turn shared commitments into practical action, so we can help members protect their development gains, attract investment and build more resilient economies,” Kanda added.

Since 2023, the banks have increased their potential lending capacity by $792 billion over the next decade through the implementation of recommendations from the G20’s Capital Adequacy Framework and other financial innovations. INQ