“Reviewing the AfDB’s Capital Adequacy Framework (CAF), including net income transfers to prudently optimize the balance sheet, is also key to increasing lending operations for Developing Member Countries (MDCs) “said Ajay Seth, Secretary in the Department of Economic Affairs. He was speaking at the AfDB’s 55th Annual Meeting.
Seth, who is the alternate governor for the meeting, said rising commodity prices were putting food security at risk. “We are meeting against a backdrop of tighter monetary policies, a slowing global economy, supply chain disruptions, unprecedented inflation and rising commodity prices, putting food security at risk. and livelihoods, and the development gains made so far,” he said. Fiscal space has shrunk considerably and an increase in public debt has limited space for additional borrowing and aggravated debt vulnerabilities, he added.
The need of the hour is to increase private sector operations to leverage the AfDB’s limited capital, Seth said. Developing more affordable and innovative financing solutions will have a multiplier effect, he stressed. It will also generate employment in the DMCs and the AfDB will need to mobilize resources to continue focusing on poverty reduction, he said.
The transfer of low-cost climate technologies from developed countries to developing countries has also become crucial. As the Manila-headquartered multilateral lender has high climate ambition, Seth said climate change components must be integrated into every project to improve the climate resilience and sustainability of DMCs.
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India’s economy, he said, was on the road to recovery, supported by key structural reforms, and his response emphasized supply-side reforms rather than managing supply. Requirement.