No longer entitled to near absolute immunity, MDBs may be prompted to modify their charters, lending practices, and accountability mechanisms.

Key Points:

..The Supreme Court reversed the D.C. Circuit’s ruling, holding that international organizations are entitled to the same limited immunity as granted to foreign governments under the Foreign Sovereign Immunities Act (FSIA), enacted in 1976.

..A Multilateral Development Bank’s (MDB’s) exposure to suits in the US depends on the immunity provisions within the MDB’s charter, application of the FSIA’s “commercial activity” exception, and the availability of a forum non conveniens defense.

..Jam may lead MDBs to amend their charters to include stronger immunity provisions, strengthen environmental and social covenants in negotiated loans and more strictly enforce such covenants, issue fewer loans in high-risk industries and regions, or bolster their independent accountability mechanisms.