The Asian Development Bank’s (ADB) said on Apr. 30 that its Board of Governors had agreed to triple its capital base from 55 billion to 165 billion USD.
The lender said in its press release that this would give it much-needed resources to respond to the global economic crisis and to the longer term development needs of the Asia and the Pacific region.
An overwhelming majority of ADB's 67 member countries endorsed the fifth general capital increase of the bank, which is the largest one in history and the first since ADB increased its capital by 100 percent in 1994.
The 200 percent increase will help ADB to substantially increase its support to countries affected by the global downturn, enabling it to provide an additional 10 billion USD from its Ordinary Capital Resources over the next few years for crisis-related assistance.
The capital increase decision comes two days before Manila-based bank begins its 42nd Annual Meeting in Bali, Indonesia, from May 2-5.
ADB estimates that the crisis will keep more than 60 million people in developing Asia trapped in absolute poverty this year, and nearly 100 million more in 2010./.