Kunle Aderinokun
15 May 2009
Dakar — The 2009 Annual Meetings of the African Development Bank (ADB) Group closed yesterday with the resolution of the Board of Governors to increase the capital of the development bank window by some 200 percent as well as replenish the African Development Fund (ADF) window with substantial resources so as to enable it cope with the global financial crisis.
The subscribed capital of the ADB as at December 31, 2009 was about UA21.77 billion- - that is about $33.52 billion.
The implication is that, if the proposed capital increment is approved at a meeting of the RMC and non-Regional Member Countries(non-RMCs) in Helsinki, Finland in October this , the Bank Group's subscribed capital will be shored up by UA43.54 billion to about UA65.31 billion- that is, $100.56 billion and become effective immediately.
The increased capitalisation and replenishment of the ADF are expected to improve the Bank Group lending and financing capability and play a more important role in helping regional member countries (RMCs) to cope with the crisis.
The Governors who are finance and economy ministers representing 77 member-countries has also agreed not to move the headquarters of the Bank Group from its Temporary Relocation Agency (TRA) in Tunis back to Abidjan, Cote D'Ivoire 12 months, until after because the situation in the latter is yet conducive for an immediate return of the office to the country.
The Bank Group had moved its headquarters to the TRA in Tunis , sometimes in March 2003, following the war that broke out in Cote D'Ivoire which made Abidjan risky for the office.
The foregoing formed the major highlights of the two days of brainstorming in Dakar , Senegal by the Board of Governors on burning economic and development issues in addition to the approval of the 2008 Annual Report and audited accounts of the Bank Group and work programme for 2009.
The proposal for the mobilisation of resources for the Sixth General Capital Increase of the non-concessional ADB window topped the agenda of the Governors and it was one for which the Board has therefore sanctioned immediate commencement of negotiation.
Essentially, the Board had mandated its Consultative Committee "to initiate with all possible expediency consultation with Member States of the Bank leading, should it be needed, to a plan for a general capital increase designed to enable the Bank to meet its ordinary capital requirements in future."
The meeting also directed the Committee to "review a report containing an appropriate recommendation regarding a possible Sixth General Increase of Capital for consideration at the 45th Annual Meetings of the Bank" in 2010.
The Board, however, approved Cote d'Ivoire 's application to host the next Annual Meetings which would take place from May 27-28 2010 in Abidjan . Similarly, the Board of Governors also approved the application of the Grand Duchy of Luxemburg to become a member of the Bank Group and considered the progress report on the implementation of Turkey 's membership application approved by the Board last year.
The Governors at the meeting commended management of the Bank Group for its initiative to help the RMCs weather the storm as they strive to cope with the crisis.
At the closing ceremony, chair of the Board of Governors and Senegalese Finance Minister, Abdoulaye Diop, recognized and praised the excellent performance of the Bank Group, especially with regards to the institution's proactive reaction to the global financial crisis.
Also remarking, ADB President Donald Kaberuka pointed out some of the outcomes of the two-day sessions with regards to the operational, financial and institutional activities of the Bank Group.
Of note, he cited, there was a general consensus that, the Bank must scale up its activities and work intelligently with other partners to meet the growing needs of its RMCs as the continent to weather the storm the crisis on unprecedented proportion.
He stressed : "We need to appreciate that it is no longer business as usual. We must demonstrate that there is a crisis."
The two-day event, which was themed: "Africa and the Financial Crisis: An Agenda for Action", was formally declared open by Senegalese President Abdoulaye Wade and was witnessed by Burkinabe President Blaise Compaore; Ghanaian Vice President John Dramani Mahama, Chair of the African Union Commission (AUC), Jean Ping and; the UN Economic Commission for Africa (UNECA) Executive Secretary, Abdoulie Janneh.
The intercontinental annual event attracted more than 2,000 people including Governors representing 77member countries of the Bank Groups as well as heads of multilateral development agencies, civil society groups, NGOs and business people.
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