The African Development Bank (AfDB) faces a growing demand for loans from African countries trying to cushion the impact of the global crisis and will need a threefold increase in capital to prevent it breaching lending limits. “We need a 200% increase in capital,” says Donald Kaberuka, the AfDB’s Managing Director, adding that “there is political will to do so”.
The Tunis-based African Development Bank (AfDB) has asked its 77 member nations for a recapitalization top-up — the first time in more than 10 years, reports AfDB treasurer Pierre Van Peteghem.
The bank estimates it will increase lending to African countries by 14% a year until 2013, pushing debt as a ratio of usable capital to more than 100% above its target. The AfDB’s capitalization was $3.5 billion in 2008. Read the rest of this entry »
