Canada announces new support to the African Development Bank

Prime Minister Stephen Harper today announced that Canada will provide the African Development Bank more lending room to respond to the pressures of the global economic crisis. This action to temporarily triple callable capital for the Bank reinforces Canada’s London G20 commitment to strengthen and support international financial institutions.

“Canada is the first country to have responded to a critical need of regional banks in this innovative way,” said Prime Minister Harper. “Our support recognizes efforts by the African Development Bank to ensure it has sufficient resources to respond quickly to the demands of its borrowing members while it continues its poverty reduction efforts.”

Canada’s increase in callable capital, which serves as a guarantee from shareholders, will provide the African Development Bank approximately USD$2.6 billion [CAD$2.8 billion] in additional lending room. This triples the level of Canada’s shares in the Bank, allowing it to increase lending by 75 percent compared to its original planned lending for 2010, building on the innovative model that Canada introduced last April for the Inter-American Development Bank.

As leaders convene in Pittsburgh to take part in the G20 leaders’ summit, Prime Minister Harper is promoting a focused agenda, advocating the full implementation of stimulus measures, concrete action to keep our trade flows expanding and the importance of strengthening domestic financial sector regulation to facilitate a sustainable and balanced economic recovery.