Fernando Haddad, the finance minister of Brazil, urged the G20 on Friday to intensify talks about reforming multilateral development banks so that they can increase funding for initiatives tackling poverty and climate change.
In his last election campaign, President Luiz Inacio Lula da Silva called for developed countries to give developing countries more funding to help them fight global warming in addition to addressing the rising deforestation and hunger in Latin America’s largest economy.
Haddad’s comments follow the U.S. nomination of former Mastercard Inc MA.N CEO Ajay Banga to lead the World Bank, betting the India-born executive’s ties to the private sector and emerging markets will jump-start the institution’s overhaul to better address climate change.
“We must deepen discussions on reforms to the multilateral development banks that reinforce their role in forging partnerships and channeling resources to deal with the nexus of climate, food, and poverty,” Haddad said in a speech at a G20 meeting in India.
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“Those institutions must be well capitalized and flexible to support developing countries with long-term financing and adequate interest rates,” he added. “It is also important that we have progress on the proposals to mobilize additional resources that are on the table.”
In addition to the World Bank, Brazil is also a key member of institutions such as the Inter-American Development Bank and the BRICS-led New Development Bank, both currently headed by Brazilians.
Haddad also said in his speech the South American country was concerned about global debt levels and that rising interest rates and slowing economic growth were aggravating matters.
He stressed the Group of 20 major economies must continue to work on their Common Framework, set up in late 2020 to offer relief to low-income countries facing pressures resulting from COVID-19 and tightening global financial conditions.
“Having mechanisms in place for orderly and timely restructuring is in the best interest of creditors and debtors,” the minister said.
Haddad had meetings scheduled with his Spanish counterpart on the sideline of the summit on Friday, and was also expected to meet with Argentine and South African finance ministers.
Story adapted Nasdac
