AfDB Challenges the World Bank’s Opinion on Lending

The African Development Bank on Thursday pushed back against World Bank President David Malpass’ comments that it and similar regional development banks were contributing to emerging market debt problems, saying that his criticism was “misleading and inaccurate.” Malpass said at a World Bank IMF debt forum on Monday that the African Development Bank was “pushing large amounts of money into Nigeria, South Africa, and others without the strongest program to sustain it and push it forward.” He said the AfDB, the Asian Development Bank and official export credit agencies had a tendency to lend too quickly, worsening challenging debt problems in emerging market countries. The African Development bank said Malpass’ statement was “inaccurate and not fact based. It impugns the integrity of the African Development Bank, undermines our governance systems, and incorrectly insinuates that we operate under different standards from the World Bank.” The Abidjan, Cote d’Ivoire-based development lender said it provides a strong governance program for its regional member countries that focuses on sustainable financial and debt management, transparent natural resources management, and mobilization of domestic resources.

SOURCE: REUTERS AFRICA