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CSO letter to the World Bank's lending arm calls for a revision of financial intermediary lending

Added 27 Mar 2014
Ahead of the World Bank and IMF spring meetings next month, more than 20 CSOs, including Eurodad and its members, have sent a letter to the Executive Vice President of the International Finance Corporation (IFC), Jin-Yong Cai. The letter calls for a comprehensive revision of its action plan following the findings by the Compliance Advisor Ombudsman (CAO), and follows the response to a previous letter sent in November 2013.

Since the CAO released its audit earlier last year, civil society has continued to push the IFC to strengthen its efforts to improve its flawed action plan. 
 
In the letter, CSOs reiterate that the IFC’s action plan on financial intermediary lending is inadequate and urge the IFC to:

  • Immediately revise this action plan to comprehensively address the CAO audit's findings before implementation of the action plan begins; and
  • To launch a review to develop a new group-level strategy for investments in the financial sector to fundamentally rethink the nature, purpose, modalities and limits of these investments.

The letter also has a briefing attached which includes a number of recommendations to improve the IFC’s short-term action plan while resolving some of the fundamental problems with its overall strategy towards financial market investments.
 
Furthermore, the current investigation by the CAO regarding the case in Honduras involving IFC client Corporación Dinant – a palm oil company which has been accused of land grabbing, murder and kidnapping - is one of the most damning ever for the IFC and once again highlights the need for comprehensive reforms. 
 
To read the full letter, click here