The president of the World Bank, Ajay Banga, announced that the organization will release additional information from its own database, specifically related to debt defaults. This initiative aims to encourage increased private sector investment in developing nations and will begin next week.

At the China Development Forum on Sunday, Banga said that the World Bank Group had successfully gathered $41 billion in private investments for developing economies and raised an additional $42 billion through bond issuances last year. These figures are expected to increase even further this year.

However, he asserted that further advancements were necessary and the bank was actively addressing various obstacles in order to stimulate private sector investment in developing economies.

According to Banga, developing nations have experienced a decrease in economic growth over the past twenty years, dropping from 6% to just 4%. He further stated that for every percentage point lost, 100 million individuals would fall into poverty, and there has also been an increase in debt levels.

According to Banga, developing nations are also confronted with an “unthinkable” difference between the projected addition of 1.1 billion young individuals to the labor force in the next 10 years and the expected creation of only 325 million jobs.

In order to gain a deeper understanding of the problems, the bank organized a discussion group consisting of 15 leaders from asset management firms, banks, and operators. They pinpointed concerns such as regulatory clarity, political risk insurance, and foreign currency risk, according to the speaker.

Last month, the bank announced plans to streamline its loan and investment guarantee system and increase its annual guarantees to $20 billion by 2030.

Next week, Banga announced that the bank and a group of development institutions will begin releasing private sector recovery information based on county income level. This is in an effort to boost investor trust.

According to him, the World Bank plans to release information on private sector defaults categorized by credit rating, as well as historical data on sovereign defaults and recovery rates dating back to 1985.

Banga stated that the ultimate objective is to attract a higher amount of private sector investment into developing economies, in order to have a positive impact and generate employment opportunities.

The previous leader of Mastercard stated that the bank is currently developing a plan to create a secure platform, with the goal of making it simpler for pension funds and other large investors to bring their substantial investments of $70 trillion to emerging markets.

The speaker suggested that combining larger, standardized investments into a single package would promote significant investment on a large scale. This would eliminate the current issue of having various small, customized loans with their own specific paperwork, level of risk, and pricing.

Banga stated that China’s accomplishments in the last 50 years are a clear indication of what can be achieved. He observed that China has generated millions of employment opportunities, significantly decreased poverty levels, and reduced emissions. Despite being a former major borrower from the World Bank, China now contributes significantly to the bank’s funds.