Multilateral lenders vow support for stability and resilience

Amid growing global uncertainty, especially in the Middle East, major MDB heads have called for enhanced cooperation to preserve stability, protect development gains and address economic pressures across member countries.

Masato Kanda, President of the Asian Development Bank and current chair of the MDB Heads Group, said the banks are collaborating more closely than ever to support members and clients amid a volatile global environment. He noted that by leveraging their combined financial resources, expertise and partnerships, the MDBs are enabling countries to address immediate challenges while strengthening long-term resilience.

On the sidelines of the World Bank Group–International Monetary Fund Spring Meetings, the MDB heads noted that higher energy costs, supply chain disruptions, and tighter financial conditions are already impacting economies. They emphasised the MDBs' readiness to provide timely and effective support, helping countries manage risks, uphold macroeconomic stability, and safeguard vulnerable populations. ing impact at scale, with a focus on private-sector development, job creation, infrastructure, and long-term, sustainable growth, in line with their mandates and operational priorities.

They underscored the need to mobilise private finance and expand financing capacity, using originate-to-distribute and risk-sharing models that enable MDBs to create bankable opportunities and attract private capital at scale. A working group will advance these efforts. The heads also recognised the value of greater transparency on credit risks in emerging markets, scaling up local-currency financing—particularly by developing domestic financial markets to mitigate exchange-rate risks—and maintaining a disciplined use of blended finance. The MDBs will work together on a unified approach to measure the impact of their operations on job creation, poverty reduction, social cohesion, and vulnerability. Develop resilient and responsible supply chains that underpin energy security, digital transformation, job creation and value addition across their regions of operation. In addition, the MDBs have launched Water Forward, a global initiative to advance investable, scalable water systems that support jobs, prosperity, food security, and resilience. The heads confirmed continued joint efforts in priority areas such as artificial intelligence.

The MDB heads reiterated their commitment to greater system-wide effectiveness, with an increased focus on quality and value. They agreed on a common value-for-money framework for procurement to ensure the quality and sustainability of MDB-financed projects, with each bank refining it to suit its operational context. Progress was also noted in adopting mutual reliance frameworks to facilitate more efficient joint project financing.

The HeadThe Heads of MDBs Group includes major multilateral development banks and the IMF, all of which collaborate to strengthen global development efforts.