Callable Capital of the Inter-American Development Bank: A Report based on the MDB-wide Review of Callable Capital

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De Rosa,Gustavo Alberto;
Elbech, Søren;
MacDonald, Ian;
Macri, Alessandro
Apr 2024
This report presents the Inter-American Development Banks (IDB) results of the Review of Callable Capital exercise, initiated by a group of Multilateral Development Bank (MDB) shareholders, to support efforts related to the G20 Independent Review of Multilateral Development Banks (MDB) Capital Adequacy Frameworks (“G20 CAF Report”). The report confirms that Callable Capital at IDB is legally valid and binding and could be activated by Executive Directors. Some shareholders have mechanisms in place to carry out a call on callable capital on short notice, and others have accelerated processes that could be activated. A call on callable capital remains a highly remote scenario, as confirmed by the reverse stress testing exercise, in line with the Banks solid financial policy framework.