Canadian Prime Minister Mark Carney supports a new global defense bank called the Defence, Security and Resilience Bank (DSRB), which aims to help allied countries rearm. The bank is looking to raise around €100 billion (C$161 billion) to provide low-cost loans to governments and defence contractors for military projects. It will also guarantee loans for smaller, riskier firms. So far, Canada, along with Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey, and Ukraine, has expressed support for the initiative.
As of August, the DSRB had secured about €5 billion in commitments but aims for €20 billion in paid-in capital and an additional €80 billion available when necessary. However, major economies like Germany and Britain have not yet committed, which raises concerns about the DSRB’s ability to achieve the triple-A credit rating necessary for the lowest funding costs.
Read the article at Modern Diplomacy
Reuters: The battle to build a global defence bank