International Finance Institutions Pledge Increased Collaboration to Accelerate Development of Local Capital Markets
Representatives of seven international finance institutions today (April 18) vowed to increase collaboration and improve coordination to accelerate the development of local capital markets and increase access to local currency finance in emerging markets.
Ahead of the 2013 Spring Meetings of the World Bank Group-International Monetary Fund in Washington, D.C., senior officials of the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, European Development Finance Institutions, Inter-American Development Bank, International Bank for Reconstruction and Development, and International Finance Corporation discussed collaboration on specific initiatives to promote local capital markets and local currency financing.
On behalf of their institutions, officials pledged a continued commitment to the development of local currency finance and capital markets through collaboration on direct market participation, policy dialogue, advisory assistance, and advocacy.
They also affirmed a joint aspiration to accelerate the development of local currency finance and emerging capital markets by leveraging the expertise and experience of each institution, and by coordinating efforts when this can achieve greater impact.
“A thriving private sector is a key driver of economic growth and jobs. Access to financing, and local currency finance in particular, is one of the biggest challenges for the private sector in developing countries,” said Jingdong Hua, IFC Vice President and Treasurer. “Providing such access through deep and resilient local capital markets is essential to achieve sustainable economic growth and shared prosperity.”
Officials vowed to coordinate to ensure they complement each other’s efforts. “Given the pivotal role that local capital markets play in strengthening global financial stability and providing financing for long-term investments and growth, our ability as IFIs to leverage our resources will determine how well we can support our client’s needs,” said Janamitra Devan, Vice President of Financial and Private Sector Development, World Bank Group. “By working together, our institutions can achieve much more than we could by acting individually.”
The meeting also served as the official launch of a Senior Forum for Local Currency Finance and Capital Markets Development that will meet regularly to share experiences, explore opportunities for coordination, and agree on joint initiatives.
The next meeting of the forum will take place in Washington, D.C., in October 2013.
Source: World Bank