For the President of the World Bank, the AfDB “lends too quickly” and thus aggravates the debt problem of countries. “Inaccurate and unfounded,” retorts the Pan-African institution in a statement.
At a World Bank and International Monetary Fund (IMF) forum held on February 10 in Washington, David Malpass reviewed the activities of the Asian Development Bank, the African Development Bank (AfDB) and the European Bank for Reconstruction and Development (EBRD), accusing them of a “tendency to lend too quickly and to aggravate the debt problem of countries”.
His criticism of the AfDB was more specific to Nigeria and South Africa, he said, calling for “greater coordination among international financial institutions to coordinate lending and maintain high standards of transparency.”
A statement that goes ” against the spirit of multilateralism “
Reproaches that the Pan-African institution did not want to pass up: in a press release published on February 13, it denounces a statement ” misleading and inaccurate, “which” challenges the integrity of the African Development Bank, undermines our systems of governance and erroneously implies that we operate under different World Bank standards. The very notion goes against the spirit of multilateralism and our collaborative work, “she said.
The World Bank “has operations [de crédit] much larger in Africa than the African Development Bank, “recalls the statement that the Bretton Woods institution approved $ 20.2 billion in funding in 2018, against $ 10.1 billion for the AfDB.
For the more specific examples of Nigeria and South Africa, the outstanding loans from the World Bank for the financial year 2018 were respectively $ 8.3 billion and $ 2.4 billion, when they amounted to $ 2.1 billion and $ 2 billion from the ADB, continues the institution chaired by Akinwumi Adesina. “Our Bank recognizes and closely monitors the upward trend in debt. However, there is no systemic risk of debt distress, “she said.
We think the World Bank could have explored other discussion platforms than this public statement
“The lending, policy and advisory services of these development institutions in their respective regions are often coordinated and offer better value for money to developing countries compared to other sources of finance,” said the AfDB. recalls that its AAA status allows it to obtain financing on very competitive terms and to offer favorable conditions to its regional member countries, whose substantial financing needs “remain of vital importance”.
” Close collaboration “
In terms of transparency, “our institution was ranked 4th most transparent institution in the world by the 2018 Publish What You Fund report,” said the press release.
Finally, on the issue of coordination between institutions, the AfDB ensures piloting its operations “in close collaboration with sister international financial institutions (notably the World Bank and the IMF)”.
“We think the World Bank could have explored other platforms [que cette déclaration publique] to discuss debt problems and the functioning of multilateral development banks, “the statement said before blasting out” false and inappropriate “for the last time.