By InvestAdvocate

Lagos (INVESTADVOCATE)-Global financial institution, the International Monetary Fund (IMF) and the European Investment Bank (EIB) on Thursday signed a Memorandum of Understanding (MOU) that enables the two (2) organisations to enhance their close cooperation in advancing the Sustainable Development Goals (SDGs) and in supporting capacity development and institution building.

Carla Grasso, IMF deputy managing director and Ambroise Fayolle, EIB vice-president responsible for innovation, signed the agreement in Lima, Peru on the margins of the IMF-World Bank Annual Meetings.

“This Memorandum of Understanding comes at a very important time, in the wake of the international conferences on Financing for Development in Addis Ababa in July and the Sustainable Development Goals in New York in September and ahead of the follow-up international conference on climate change in Paris in December. I am very happy that today we are joining forces on advancing the Sustainable Development Goals (SDGs) and strengthening capacity development efforts in order to address global economic challenges in the context of the post-2015 development agenda,” Grasso said in a statement:

Also, Fayolle was quoted as saying “The EIB is looking forward to reinforcing the joint efforts toward sustainable economic development, financial stability, and inclusive growth. Partnerships are the key to the SDGs’ success and cooperation between IFIs in advancing the post-2015 agenda is critical. This new partnership with the IMF will benefit the membership of the two institutions by promoting synergies and leveraging financial resources for capacity development.”

According to the global lender, given the compatible missions of both institutions and their deep commitment to promote, develop, and strengthen global financial stability, inclusive economic growth, and sustainable economic development, the signing of the MOU represents a key step in fostering the two (2) institutions’ capacity development efforts.

Since 2005, the EIB has been supporting IMF capacity development by participating in the IMF’s regional vehicles, including the Middle East Regional Technical Assistance Center (METAC) and the network of five Africa Regional Technical Assistance Centers (AFRITACs). In that regard, it has contributed a total of about $5 million to these initiatives between FY06–15.

This is coming on the heels of both institutions seek to strengthen their successful partnership in capacity development to the benefit of their membership. “Under this MOU, EIB and the IMF will harness respective strengths and expertise to foster even greater successes in the years ahead,” the IMF added.