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World Bank to boost support for China, India, Brazil
01.04.2014 17:44 "Agro Perspectiva" (Kyiv) —
The World Bank is nearly doubling its lending capacity to middle-income countries like Brazil, China, Indonesia, India and Mexico because they can provide insight to poorer countries in solving problems, Voice of Russia reports referring to the World bank president Jim Yong Kim statement.
The five countries will benefit by being able to borrow another 2.5 billion dollars a year over and above their current limits, Kim said.
Kim made the announcement in a speech at the Council on Foreign Relations in Washington that outlined internal reforms, new cost savings and a possible hydroelectric dam project on the Congo River that could increase Africa’s electricity supply by 50 percent.
In a call with reporters ahead of the speech, the World Bank president defended the increase for middle-income countries, saying it would not erode the bank’s main role of supporting the very poor.
The increase will boost annual lending to middle income countries from the current 15 billion dollars a year to 26 billion-28 billion dollars, Kim said. The move responds to «demand from middle income countries» that had reached their borrowing limits.
The bank’s «largest and most important partners» want to continue to do business with the bank not because they need the money, but because the bank provides «knowledge» and «solutions,» Kim said.
The bank is happy to have them on board because of the development knowledge they, in turn, can provide to poorer countries, Kim said.
Very poor countries, Kim said, will benefit from a record 52 billion dollars in grants and loans pledged in December.
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