Ajay Banga said he is trying to change the way the lender works to speed up projects Photocredit: Mike Blake
The World Bank is considering securitizing some of the projects that he supports to attract more private financing while preparing for rolling out a series of debt-for-development swaps, President Ajay Banga said.
It has designed the initiative to accelerate the pace of development in some of the poorest countries in the world and to create some of the jobs that hundreds of millions of young people need the next decade, he said in an interview in Mozambique.
“We can’t do a project per project,” he said about the securitization plans. “We don’t have 100 years.”
Banga, who took the lead two years ago about the world’s largest multilateral development bench, said he is trying to change the way the lender works to speed up projects. The Securitization Plan provides private institutions such as large pension funds that take loans from the balance of the World Bank, so that the lender can invest more. The Swaps would enable countries to spend the interest in the development.
According to the Securitization Plan, the bank works together with Goldman Sachs Group Inc. To a pilot project to some of the projects that are by its International Finance Corp. -Unit are supported, combining a package in a package to offer the market to the market in the next four to five months, he said.
“It is the first time that the World Bank has done this,” he said, adding that the idea would be to get the credit assessments of the packages. “Banks always do it.”
Goldman Sachs refused to comment.
The debt for development swaps are modeled on a scheme that the bank concluded with Ivory Coast in December. According to that plan, the West -African nation will buy back around € 400 million ($ 462 million) of its most expensive debt that will mature over the next five years.
By using a partial world bank guarantee, it will decrease a commercial loan with a longer duration, a lower interest rate and the responsibility period to release € 330 million in the period and save € 60 million – as a result that the savings are spent on education.
“I have nine more in the pipeline,” said Banga, who refused to identify the countries. “They are everywhere in Africa and parts of Asia.”
Register here for the biweekly Africa newsletter and subscribe to the next Africa podcast on Apple, Spotify or wherever you listen.
More stories like these are available on Bloomberg.com
© 2025 Bloomberg LP
Published on July 30, 2025
#World #Bank #plan #securitization #debt #waps #stimulate #development