European Bank For Reconstruction And Development Leads MDB Coalition To Safeguard Global Stability As Energy Costs Surge Amid Middle East Uncertainty

In the midst of rising global uncertainty, including the evolving situation in the Middle East, the Heads of Multilateral Development Banks (MDBs) emphasized the need for stronger collective action to safeguard stability, protect development progress, and support member nations facing growing economic pressures. Meeting on the sidelines of the World Bank Group–International Monetary Fund Spring Meetings, the Heads noted that the effects of ongoing global challenges are already evident in higher energy prices, disrupted supply chains, and tightening financial conditions across many economies.

Masato Kanda, President of the Asian Development Bank and Chair of the MDB Heads Group, said that MDBs are now working more closely than ever to help countries navigate a complex and fast-changing environment. He stressed that by combining financial resources, technical expertise, and collaborative partnerships, MDBs are assisting governments in addressing immediate difficulties while also strengthening long-term economic resilience.

During their discussions, the Heads reaffirmed the collective commitment of MDBs to deepen cooperation and deliver results at scale. Their shared priorities include expanding private sector development, supporting job creation, improving infrastructure, and promoting long-term sustainable growth aligned with each institution’s mandate and strategic focus. They also highlighted the need to mobilize greater private finance by expanding financing capacity and adopting originate-to-distribute and originate-to-share models that enable MDBs to generate bankable projects capable of attracting large volumes of private investment. As part of this effort, a new working group will be established to advance private finance mobilization.

The MDB Heads further underscored the importance of increasing transparency around credit risks in emerging markets through the Global Emerging Markets (GEMs) consortium and emphasized the need to scale up local currency financing. Strengthening domestic capital markets, reducing exchange rate vulnerabilities, and using blended finance responsibly were also identified as essential tools. In addition, the Heads agreed to enhance collaboration on developing a common approach to measuring how MDB-supported projects contribute to better job opportunities, poverty reduction, and stronger social stability.

Cooperation among MDBs will also intensify in several key areas related to growth and resilience. They are increasing joint efforts on critical minerals to help build diversified, secure, and responsible supply chains that support energy security, digital transformation, job creation, and economic value addition. Another major initiative launched during the meeting was Water Forward, a global effort aimed at promoting scalable and investable water systems that strengthen food security, create employment, enhance resilience, and support long-term prosperity. The Heads also confirmed ongoing joint work in other priority fields, including artificial intelligence.

In addition to operational collaboration, MDBs reiterated their commitment to improving the overall effectiveness of the development finance system. They agreed on a shared Value for Money framework for procurement, which will be adapted by each institution to ensure high-quality and sustainable outcomes in MDB-financed projects. Progress was also noted in the increasing use of mutual reliance frameworks that help streamline joint financing and enable faster, more coordinated project implementation across multiple development banks.

The MDB Heads Group includes the African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and the World Bank Group. The International Monetary Fund also participates in the Heads’ discussions, reflecting the broad, interconnected nature of the global development agenda.