ALMA-ATA, June 27. /TASS/. Blended finance will be the only way of engaging private capital in major infrastructural projects in the near term and it should be developed, VEB.RF Senior Banker Sergey Storchak said during the annual meeting and the business forum of the Eurasian Development Bank.

"I would like to speak about the financing mechanism that will obviously dominate in the near term as the only method of private capital raising. Infrastructural projects at present require huge funding; this is related to the payback period. We need a mechanism, through which the resources accumulated in the private sector can be moved to sectors of the economy and projects in demand at present. Blended finance is developing at a quick pace in order to ‘pull’ the private sector to infrastructural projects financing," he said.

Public finance and state funds were the main financing source for such projects "but these instruments are unable now to shoulder financing of plenty of projects related to sustainable development and to fulfillment of the Paris agreement on climate," Storchak noted.

Assets of about $430-440 bln are now accumulated in the global system and the minimum is used from this amount to finance infrastructural development projects, while slightly more than 10% would be enough to cover this financial gap, he added.