BDC CEO leading multilateral initiative speaks to Reuters ahead of NATO summit

'Part of middle-power alliance push by Canadian PM to boost allies' defense capabilities'

Isabelle Hudon, CEO of the Business Development Bank of Canada. [Reuters]
Isabelle Hudon, CEO of the Business Development Bank of Canada. [Reuters]

Canada plans to announce a founding membership list of about 10 countries for a proposed "global defense bank" at next week's NATO summit in Turkey, with South Korea among the possible founding members, Reuters reported Wednesday (local time).

Isabelle Hudon, CEO of the Business Development Bank of Canada (BDC) and Canada's lead negotiator for the multilateral initiative, said the goal is to unveil the list of founding members by the time the NATO summit concludes.

Canadian Prime Minister Mark Carney has been pushing to establish the Defence, Security and Resilience Bank (DSRB) as part of a broader middle-power alliance he has championed this year to counter the erosion of the US-led world order. The bank's primary purpose is to raise up to 100 billion pounds in low-interest financing to strengthen the defense capabilities of allied nations.

Hudon said the initial founding members, aside from Canada, would consist mostly of European countries, though she declined to name them. She also cautioned that the announcement could fall through depending on the outcome of final negotiations with allies over capital commitments and other terms, but said the project is clearly gaining momentum.

"The prime minister has said from the outset that when launching this initiative, rather than waiting for perfection, we should first bring together the countries ready to be founding members right now and keep the door open for others to join later," she said.

However, the project's prospects could become uncertain if it fails to secure the full backing of major economies essential to obtaining a top credit rating, Reuters noted. Hudon said Canada has had "productive conversations" with South Korea and put the odds of Seoul joining at 50-50, adding that no other G7 country is close to joining at this stage.

Meanwhile, South Korea's Ministry of Economy and Finance said it is reviewing Canada's proposal. Canada's Finance Ministry did not immediately respond to a request for comment on the matter, Reuters added.


yckim6452@heraldcorp.com