Washington, May 4, (dpa/GNA) - Ajay Banga has been appointed as the new head of the World Bank, announced the global financial institution on Wednesday in Washington.
The Indian-born American was nominated by US President Joe Biden last month, as is typical for the US leader who is usually the one to elect a candidate for the role.
Banga succeeds David Malpass who announced his retirement in a surprise move in February.
He was the only candidate and will be in office for the next five years after he takes over on June 2.
Up until recently, Banga was vice-chairman at the financial investment firm General Atlantic.
His first challenge in the new job will likely be the comprehensive reform of the World Bank, which the global institution is currently pushing through.
President Biden congratulated Banga, saying he would help steer the World Bank in the right direction, which is currently evolving to meet global challenges.
The new head of the World Bank will place a large emphasis on climate change and play an important role in bringing the public and private sectors together to drive the necessary “fundamental changes in development finance.”
Malpass’ surprise resignation came about a year before his term ended. The economist, nominated by former president Donald Trump, was heavily criticized for a statement on climate change.
Last September, Malpass dodged questions about whether burning fossil fuels was contributing to global warming and instead said: “I am not a scientist.”
Malpass later tried to backtrack, saying he regretted his choice of words.
The World Bank is supported by 189 countries worldwide and lends money to poorer countries on favourable terms with the aim of strengthening their economies and reducing poverty.
GNA