Nine countries have pledged to create a new global bank dedicated to financing defense, security, and resilience, Canadian Prime Minister Mark Carney announced Tuesday. Presented on the sidelines of the NATO summit in Ankara, this initiative aims to facilitate the rearmament of allied countries by mobilizing low-cost financing for military projects.
According to Mark Carney, Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey, and Ukraine have joined Canada in supporting the creation of this future institution, called the Defence, Security and Resilience Bank (DSRB). Its headquarters will be located in Canada.
The stated objective is to raise up to £100 billion, or approximately $134 billion, to finance defense-related programs at a lower cost. The future bank also plans to offer loan guarantees to private banks that finance defense companies, thereby facilitating access to capital.
The initial list of participants does not include any other G7 members besides Canada, which could initially limit the institution's financial capacity. Canadian Foreign Minister Anita Anand, however, assured that the bank would remain open to the membership of new countries.
For Linus Terhorst, a specialist at the Royal United Services Institute, these initial commitments allow the project to get off the ground, even though its promoters had hoped to secure the support of major European powers from the outset.
The participating countries now wish to have the necessary agreements ratified so that the Bank for Defence, Security and Resilience can be officially launched in 2027. This initiative comes in a context of increased military spending within allied countries and the search for new financing mechanisms to support defence capabilities.
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