India on Monday called for process reforms at the Asian Development Bank (ADB) to reduce the time taken to approve both sovereign and non-sovereign lending and sought expeditious action on its capital expansion to ensure adequate support to developing economies.
"It's an old adage that time is money. It holds relevance still. Process reforms for reduction in processing time, both for sovereign and non-sovereign operations, shall benefit the DMCs (developing member countries) significantly," Union finance minister Nirmala Sitharaman said in a statement at the annual meeting of the board of governors of the ADB in Milan.
She said that ADB must continue to adopt a country-led and differentiated approach to ensure its priorities and support are aligned with the development priorities of developing countries.
"We look forward to expeditious action on capital expansion/management measures such as exposure exchange agreements, hybrid capital, callable capital, and the Innovative Finance Facility for Climate in Asia and the Pacific, to ensure that the exposure limits do not pose restrictions to borrowing programmes of DMCs," Sitharaman said.
The FM lauded the gains with respect to renewed focus on a private sector shift and private capital mobilisation.
She also offered to back the ADB on its digital transformation agenda.
"We are happy to note that digital transformation is one of the five identified strategic priority areas under the Strategy 2030. We would be eager to support ADB in its digital transformation agenda," she said.
Sitharaman met ADB president Masato Kanda, Italian finance minister Giancarlo Giorgetti, Japanese finance minister Katsunobu Kat and Bhutanese finance minister Lyonpo Namgay Dorji on the sidelines of 58th annual meeting.
The finance ministry said there was no discussion "on issues related to Pakistan with the ADB President and the Italian Finance Minister" in Milan.
During the meeting with the ADB president, Sitharaman emphasised that India offers opportunities for the multilateral lender to pilot new, innovative financing products and models, it said.
Deepening bilateral cooperation and strengthening bilateral ties topped the agenda for the talks between the Italian finance minister and Sitharaman.
"The meeting highlighted implementation of the Joint Strategic Action Plan 2025-2029 announced by Prime Minister Modi and Italian Prime Minister Giorgia Meloni in November 2024, which will add depth and momentum to our cooperation in priority domains," the finance ministry said.
Earlier, speaking at the annual session, Kanda said the uncertainties facing Asia and the Pacific were also an opportunity to build a more resilient and sustainable future.
"External shocks, debt burdens, and climate change weigh heavily on the people and economies of the region. But we are not starting from zero. Growth remains solid, trade and economic integration are deepening, supply chains are diversifying, and digital connectivity and innovation are accelerating," said Kanda, adding that it was a call to be bolder and to move faster.
China's governor to the ADB board Lan Fo'an flagged the increasing turbulence and chaos globally, saying unilateralism and protectionism were seriously undermining international rules and order and impacting the stability and recovery of the world economy.
He also termed statements by members, such as the US, raising the issue of China's graduation to the developed country category untenable. "According to ADB's 2023 assessment, the PRC has not yet met all the criteria under the bank's graduation policy," he said.
A country that graduates to an improved economy status ceases to receive concessional finance from multilateral institutions.
(The reporter is in Milan at the invitation of the ADB)
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She said that ADB must continue to adopt a country-led and differentiated approach to ensure its priorities and support are aligned with the development priorities of developing countries.
"We look forward to expeditious action on capital expansion/management measures such as exposure exchange agreements, hybrid capital, callable capital, and the Innovative Finance Facility for Climate in Asia and the Pacific, to ensure that the exposure limits do not pose restrictions to borrowing programmes of DMCs," Sitharaman said.
The FM lauded the gains with respect to renewed focus on a private sector shift and private capital mobilisation.
She also offered to back the ADB on its digital transformation agenda.
"We are happy to note that digital transformation is one of the five identified strategic priority areas under the Strategy 2030. We would be eager to support ADB in its digital transformation agenda," she said.
Sitharaman met ADB president Masato Kanda, Italian finance minister Giancarlo Giorgetti, Japanese finance minister Katsunobu Kat and Bhutanese finance minister Lyonpo Namgay Dorji on the sidelines of 58th annual meeting.
The finance ministry said there was no discussion "on issues related to Pakistan with the ADB President and the Italian Finance Minister" in Milan.
During the meeting with the ADB president, Sitharaman emphasised that India offers opportunities for the multilateral lender to pilot new, innovative financing products and models, it said.
Deepening bilateral cooperation and strengthening bilateral ties topped the agenda for the talks between the Italian finance minister and Sitharaman.
"The meeting highlighted implementation of the Joint Strategic Action Plan 2025-2029 announced by Prime Minister Modi and Italian Prime Minister Giorgia Meloni in November 2024, which will add depth and momentum to our cooperation in priority domains," the finance ministry said.
Earlier, speaking at the annual session, Kanda said the uncertainties facing Asia and the Pacific were also an opportunity to build a more resilient and sustainable future.
"External shocks, debt burdens, and climate change weigh heavily on the people and economies of the region. But we are not starting from zero. Growth remains solid, trade and economic integration are deepening, supply chains are diversifying, and digital connectivity and innovation are accelerating," said Kanda, adding that it was a call to be bolder and to move faster.
China
China's governor to the ADB board Lan Fo'an flagged the increasing turbulence and chaos globally, saying unilateralism and protectionism were seriously undermining international rules and order and impacting the stability and recovery of the world economy.He also termed statements by members, such as the US, raising the issue of China's graduation to the developed country category untenable. "According to ADB's 2023 assessment, the PRC has not yet met all the criteria under the bank's graduation policy," he said.
A country that graduates to an improved economy status ceases to receive concessional finance from multilateral institutions.
(The reporter is in Milan at the invitation of the ADB)
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