As predicted (see Update 70) shareholders agreed in April to a significant increase in the capital that guarantees the lending of the International Bank for Reconstruction and Development (IBRD, the World Bank’s middle-income country lending arm). $58.4 billion was guaranteed through a general capital increase, given by all shareholders in proportion to their voting share at the Bank. However, only $3.5 billion will actually be sent to the Bank (known as ‘paid-in capital’); the rest remains a commitment to pay should the Bank need the cash (‘callable capital’). A further $27.8 billion capital (including $1.6 billion paid-in capital) was guaranteed through a selective capital increase, paid for by shareholder governments whose voting share increased through April’s governance reforms (see article).
The International Finance Corporation (IFC, the World Bank’s private sector arm) did not receive a general capital increase, but did gain a $200 million selective increase from governments whose shareholding increased because of voting reform (see article).