Washington D.C., U.S.A. — The African Development Bank Group Has entered into a $3.2 billion Reinsurance Swap Accord with the Inter-American Development Bank (IADB), extending an earlier pact initially established between both entities back in 2015. This accord was finalized in Washington D.C., coinciding with the annual spring gatherings of the World Bank Group and the International Monetary Fund.
This marks the fourth exposure exchange conducted by the African Development Bank alongside other Multilateral Development Banks, aiming continuously to discover new methods for enhancing the capital adequacy and operational efficiency of these institutions, along with increasing their ability to lend for developmental purposes.
Starting from 2015, the African Development Bank has utilized these accords to broaden its loan distribution within the governmental sector of its investment profile and efficiently allocate resources, all while maintaining a robust financial foundation. This instrument guarantees that the African Development Bank stays nimble, adequately funded, and dedicated to advancing innovative solutions aimed at fostering development across Africa.
The deal today builds upon earlier successful accords established between the African Development Bank and various other Multilateral Development Banks such as the International Bank for Reconstruction and Development along with the Asian Development Bank.
Dr. Akinwumi Adesina, President of the African Development Bank, stated, "This deal exemplifies the bank's progressive strategy towards managing capital and risks."
"We are delighted to extend our fruitful long-term partnership with the Inter-American Development Bank in crafting and implementing cutting-edge financial strategies that echo the G20's request for Multilateral Development Banks to collaborate more closely as an integrated network aimed at amplifying developmental outcomes for our member nations," stated Adesina.
The Inter-American Development Bank President, Ilan Goldfajn, highlighted the achievement of the initial pact established with the African Development Bank a decade back. He remarked, "This fresh accord represents another significant step in our robust and productive partnership with the African Development Bank. Due to this initiative, we're enhancing the fiscal strength, credibility, and funding potential of both organizations. This mutually advantageous move promises benefits for the populations across Latin America, the Caribbean, and Africa."