Over 80pct of ADB member countries subscribe to general capital increase

More than 80% of the Asian Development Bank’s (ADB) 67 member countries have subscribed to ADB’s Fifth General Capital Increase, with others likely to follow suit ahead of a newly extended subscription deadline.

ADB’s Board of Directors agreed Wednesday to extend the Fifth General Capital Increase (GCI V) share subscription deadline by six months to 30 June 2011 to accommodate the nine member countries who have not yet subscribed.

Fifty-six member countries had taken up their share entitlements as of last year’s 31 December deadline, and an additional two member countries subscribed shortly thereafter.

“We are gratified to see the high level of member country engagement to date and hope the extended deadline will enable the several member countries that have expressed their intention to subscribe to do so,” said ADB Treasurer Thierry De Longuemar.

The GCI V, authorized in April 2009, triples ADB’s capital base from $55 billion to $165 billion. ADB’s largest ever capital increase, its first since 1994, provides much-needed additional resources for poverty reduction and long-term development in the region.

The additional capital has allowed ADB to provide substantial assistance to countries affected by the recent global economic crisis, as well as giving it the financial capability to pursue longer term development priorities in the region. Funding needs in the region are immense with member countries facing significant resource gaps for meeting the Millennium Development Goals. – ADB

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