(Bloomberg) – JPMorgan Chase & Co. CEO Jamie Dimon joins executives at the World Bank Group and several other multilateral development banks as they seek to attract more private capital to efforts across emerging markets. I met with them.
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Dimon and executives including Scott Nathan, head of the U.S. International Development Finance Corp., are exploring ways to direct private capital to countries and issues that investors often overlook, and the need for higher-quality development-focused investment projects. We discussed sex.
The two met Thursday at a private luncheon hosted by JPMorgan on the sidelines of the International Monetary Fund and World Bank's spring meetings in Washington.
The World Bank and other development finance institutions strive to remain relevant as their capacity far exceeds the needs of poor countries, especially in capital-intensive climate-related projects.
So governments are pushing more investment into the private sector and asking governments to raise more capital, but so far both approaches have yielded lackluster results.
The move comes as the United States and its partners seek to provide an alternative to development financing from China, which is currently the largest official creditor to emerging markets.
Read more: Biden's pressure on World Bank funds to counter competition from China stalls
Topics discussed by Mr. Dimon and lenders included risk sharing and expanding access to private debt markets through bond issuance, which could be used by development banks to support emerging economies around the world. This is an option promoted by
Remy Liu, head of the French Development Agency, said the meeting was the culmination of years of efforts to attract private investment, and said it was the first time a bank executive as prominent as Dimon had attended such a meeting. He added that it was his first time. For the past 20 years.
“That was the first time I had contact with Jamie Dimon,” Rieux said in an interview. “He was curious and wanted to understand each bank and their purpose,” he said.
Mr. Dimon has put JPMorgan at the heart of the financial world's response to today's most pressing geopolitical issues. In January, he met with Ukrainian President Volodymyr Zelenskiy in Davos, where the leader aimed to drum up support for the war against Russia and his plan to rebuild his country.
JPMorgan counts development banks and multinational institutions, including the IMF and the World Bank, among its most influential clients. In 2020, it launched a development finance institution touted as a way to expand private financing for sustainable development deals in emerging markets.
JPMorgan declined to comment.
“People are starting to realize the huge structure of public financial institutions,” Rieux said, adding that he has also spoken to Citigroup and other Wall Street financial institutions. “We are ready to respond to this type of interest.”
Mr. Rieux is also the chair of the Finance in Common Summit, which brings together more than 500 multilateral, national, and subnational institutions with $23 trillion in assets. The group aims to deepen collaboration and integration at a summit later this year hosted by the Beijing-based Asian Infrastructure Investment Bank.
The World Bank said in a statement on Sunday that the meeting was attended by Hiroshi Matano, director of the Multilateral Investment Guarantee Agency, and Makhtar Diop, managing director of the International Finance Corporation division, which lends to the private sector. He said the conference will be an opportunity to discuss key trends in the global economy and areas for cooperation between the development finance community and the private sector.
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