Santa Cruz de la Sierra, September 16, 2024 – The T20 has selected and published a joint policy brief by FONPLATA — Development Bank and the Eurasian Development Bank (EDB) entitled “One size does not fit all – Analyzing the applicability of options for expanding lending capacity across MDBs”. The T20 is a G20 engagement group that brings together think tanks and research centers from G20 members and organizations.

The two Multilateral Development Banks (MDBs) team, led by Oscar Llamosas, Vice President of Strategic Development at FONPLATA, and Evgeny Vinokurov, Vice Chairman of the Board and Chief Economist at EDB, focused their analysis on the singularities of regional and subregional MDBs, showing that the suitability of the current options to expand the lending capacity of MDBs depends on their individual characteristics, such as size, credit rating, membership, and spatial reach. This provides a roadmap for boosting regional and subregional Multilateral Development Banks’ lending capacity, thus helping the entire MDB system to realize the potential for much-needed additional financing for the Sustainable Development Goals.

Evgeny Vinokurov highlighted the benefits of this collaborative work: “When multilateral development banks from around the world collaborate on joint research projects, they combine forces and perspectives to produce more balanced and compelling findings. Cooperation between multilateral development banks, including research, is a powerful tool that we should encourage. EDB and FONPLATA come from completely different regions (Eurasia and Latin America), but, as we have learned, the banks share similar challenges that need to be addressed. Our joint publication under the sponsorship of T20 focuses on traditional and innovative solutions that can enable regional and subregional multilateral development banks to raise capital and expand their portfolios for the benefit of their member states.”

On the other hand, Oscar Llamosas, stated: “Acknowledging that, while facing similar challenges, multilateral development banks have diverse characteristics is crucial for advancing the goal of making not only each of them but the entire international financial architecture bigger, better, and more effective. The joint work of FONPLATA and the Eurasian Development Bank aims exactly at that, raising the question of how the specificities of MDBs affect the availability and suitability of options to expand their lending capacity, as well as providing a roadmap to enhance complementarity among MDBs”.

The full document is available on the T20 website:

https://t20brasil.org/media/documentos/arquivos/TF03_ST_02_One_Size_Does_Not_F66e19a5be3588.pdf

Additional information:

The Eurasian Development Bank (EDB) is a multilateral development bank that invests in Eurasia. It has worked, for over 18 years, to strengthen and expand economic ties and foster comprehensive development in its member countries. EDB's charter capital amounts to USD 7 billion. Its portfolio consists primarily of projects with an integration effect in transportation infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.

FONPLATA is a multilateral development bank whose mandate is to support the integration and harmonious, inclusive, and sustainable development of its member countries, in order to promote their better insertion in the region and in the global market, through the funding of studies, projects, programs and the provision of technical assistance and advice. It was created in 1974 by its five founding members, Argentina, Bolivia, Brazil, Paraguay, and Uruguay, which are the current members of MERCOSUR.

The T20 is a G20 exchange group that brings together groups of experts and research centers from G20 member countries, as well as invited countries and organizations. The recommendations and policy options produced as part of T20 discussions and publications reflect a comprehensive understanding of the issues at stake and aim at contributing to the G20 discussions and decisions.

09/16/2024