Why cross debarment?
Cross debarment makes multilateral development bank funding more effective by preventing corrupt entities from participating in projects financed by the signatory Banks. The heads of five multilateral development banks signed the Agreement for Mutual Enforcement of Debarment Decisions on April 9, 2010 in Luxembourg, thus closing a problematic loophole of how to prevent corrupt entities from participating in MDB-financed development programs. The agreement stipulates that entities debarred by one MDB will also be debarred on the same terms by the other signatories for which the Agreement has entered into force.
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Current signatories include the Asian Development Bank, African Development Bank Group, European Bank for Reconstruction and Development, Inter-American Development Bank Group, and the World Bank Group.
The Agreement is currently in force for the African Development Bank, Asian Development Bank, the European Bank for Reconstruction and Development, Inter-American Development Bank Group, and the World Bank Group.