Backstopping multilateral development banks: the fiscal context of callable capital for shareholder governments

Callable capital is an international treaty obligation with a nominal value of $891 billion across seven major multilateral development banks (MDBs). It is a specialised type of guarantee committed by government shareholders as a last resort for repaying bond holders in the event of an extreme shock to MDB finances. Despite its history, as a central pillar of the MDB financial model since 1944, very little is understood about callable capital. →