ADF-OCR merger to increase financial aid to poor

Published on May 03, 2015 16:06:31 PM
Business
To boost the total annual lending capacity for poor countries, Asian Development Fund (ADF) is merging with its Ordinary Capital Resources (OCR) balance sheet with the approval of ADB’s board of governors.

This merger is formally announced by ADB’s president, Takehiko Nakao at 48th annual meeting of ADB.

The motto behind the merger is to increase financial aid to poorer members and to expand its operations in middle-income countries.

This merger will improve the risk-bearing capacity of ADB and reduces donor contributions to ADF by 50 per cent.

OCR equity will get increased to almost three times to about $53 billion with this merger, with the co-financing the financial aid is expected to reach $40 billion in the mere future from $23 billion in 2014.