Current Affairs - International - Discussion

The Asian Development Bank (ADB) signed a $3 billion sovereign exposure exchange agreement (EEA) with the World Bank, aimed at enhancing ADB’s capacity to lend to its developing member countries. This is the first such agreement between ADB and the World Bank and the sixth EEA involving ADB since 2020, bringing the total exposure exchanged to $9 billion. These agreements allow multilateral development banks to optimise risk-sharing, expand financial resources, and support economic development projects in member countries, strengthening regional and global development financing frameworks.