Definition for : Multilateral Development Bank (MDB)

A "Multilateral Development Bank" ("MDB") is a supra-national organization founded by a group of member countries to assist in the development of generally a group of beneficiary countries. Examples of MDB include the African Development Bank (ADB), the Asian Development Bank (AsDB), the European Bank for Reconstruction & Development (EBRD), and the Inter-American Development Bank (IADB). MDBs promote the practice of Co-financing whereby the MDB only finances a minority of the overall Debt or Equity investments, but its presence acts as a Credit enhancement (an umbrella against Political risk in particular).
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