U.S. Treasury Secretary Janet Yellen has rejected calls for a near-term capital increase for the World Bank.
Yellen told U.S. lawmakers that she wants World Bank reforms to expand lending to fight climate change and other global crises.
Yellen made these comments during a budget hearing of the U.S. House of Representatives Appropriations Subcommittee on State, Foreign Operations, and Related Programs on Wednesday.
- Yellen said she wants the World Bank to stretch its existing resources, adopt innovative financing policies, and mobilize private finance.
- The U.S. is the bank’s largest shareholder, and a capital increase would not be possible without its support.
- Yellen said she also expects former Mastercard CEO and U.S. nominee Ajay Banga to be elected president of the World Bank.
- The World Bank’s window for nominations closes at 6 p.m. ET on Wednesday; there have not been any challengers.
