ADB, World Bank Signed USD 3 Billion EEA to Boost Lending for Developing Nations

Current Context: On 20 October 2025, the Asian Development Bank (ADB) and the World Bank signed a USD 3 billion Sovereign Exposure Exchange Agreement (EEA) in Washington, DC.

• The agreement aims to reduce portfolio concentration risks, thereby freeing up capital for increased lending to developing nations.
• It is the first such EEA between ADB and the World Bank, but the sixth overall for ADB with multilateral development banks since 2020.
• With this deal, ADB’s cumulative exchanged amount under EEAs has reached USD 9 billion.
• The initiative will help channel more funds into infrastructure, climate resilience, and social development projects.
• Senior leaders from both institutions, including Roberta Casali (ADB) and Anshula Kant (World Bank), witnessed the signing.

Question:

Q.1 What is the total value of the Sovereign Exposure Exchange Agreement (EEA) signed between ADB and the World Bank in October 2025?
a) USD 1 billion
b) USD 2 billion
c) USD 3 billion
d) USD 5 billion

Answer: c) The signed agreement was valued at USD 3 billion, aiming to reduce risk concentration in sovereign portfolios.