RPT-Full text of IADB resolution on capital increase

(Repeats with no changes to headline or text)

MEDELLIN, Colombia, March 30 (Reuters) - The following is a full text of the Inter-American Development Bank's resolution passed at its annual meeting to set a deadline for the presentation of proposals for increasing its capital.

The IADB turned 50 years old in 2009. It is the oldest and largest regional bank in the world and serves Latin America and the Caribbean. It now has 48 members, with the China being admitted to the bank as a full member in January of this year.

The resolution copied below is taken from the IADB's website and is considered the final version which was passed unanimously.

(For more on the IADB meeting, click [ID:nN30352983])

PROPOSED RESOLUTION

STATUS OF BANK RESOURCES

The Board of Governors

RESOLVES:

1. Management shall immediately initiate a review of the need for a general capital increase of the Ordinary Capital and replenishment of the Fund for Special Operations, which includes a robust analysis of the nature and scale of long-term demands. In this context, Management's proposals to support the continued social and economic development of the Region, especially the poorest and most vulnerable countries and people, must address the following:

a) development of a new institutional strategy that makes effective use of additional resources to support social safety net programs, poverty and inequality reduction, infrastructure investments and climate change;

b) implications of the Bank's capital adequacy framework; and

c) re-evaluation of the private sector policy in order to support the Region's development.

It is the sense of the Board of Governors that the Chairman of the Board of Governors should convene the Committee of the Board of Governors in the third quarter of 2009 to review progress on these issues and suggest next steps.

2. Management shall present to the Board of Executive Directors by the end of April 2009 options that are consistent with the Bank's financial strength to further expand the Ordinary Capital financing envelope for short-term crisis response beginning this year. These options shall include:

a) accelerating the evaluation of the capital adequacy framework and review of existing financial policy limits;

b) considering the Bank's ability to mobilize additional resources; and

c) exploring other measures to help expand capital flows to the public and private sectors of the Region.

3. Management shall present to the Board of Executive Directors by the end of April 2009 an array of options to expand the Bank's financial capacity to support the poorest and most vulnerable countries in the Region. These options shall include accelerating disbursements from and additional resources to the Fund for Special Operations and reviewing the timeline for its replenishment.

(Adopted March ___, 2009)