What are the major multilateral development banks?

Question

What will be an ideal response?

Answer 1

The term typically refers to the World Bank Group and four regional development banks: the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank. These banks have a broad membership that includes both developing countries (borrowers) and developed countries (donors), and their membership is not limited to countries from the region of the regional development bank. While each bank has its own independent legal and operational status, their similar mandates and a considerable number of joint owners lead to a high level of cooperation among MDBs. The MDBs provide financing for development in three ways. First, they provide long-term loans at market interest rates. To fund these loans, the MDBs borrow on the international capital markets and re-lend to borrowing governments in developing countries. Second, the MDBs offer long-term loans (often termed credits) with interest rates set well below market rates. These credits are funded through direct contributions of governments in donor countries. Finally, grants are sometimes offered mostly for technical assistance, advisory services, or project preparation.