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Home » About World Bank

World Bank

Ever wondered where does all the money come from to operate the World Bank and how the funds are used to achieve the mission of the Bank. Read on to know more about the operation of the World Bank. Well, one of important aspects about the World Bank is the fact that it is a combination of two associated entities, namely The International Bank for Reconstruction and Development (IBRD) and The International Development Association (IDA), which provide low or no interest loans and grants to the countries that have little or no access to the international credit markets. Another characteristic feature of the World Bank is that the Bank is not a Bank in true sense of the term. Unlike other financial institutions that operate financially, the operations of the World Bank never aim to earn profit.

While IBRD is basically financed by selling AAA- rated bonds in the world financial markets. IDA is acknowledged as the largest source of interest free loans and grants aid to the financially weakest countries of the world. Though IBRD maintains a small margin, the larger portion of income is siphoned from its own capital, which results from the yearly reserves and the monetary amounts paid by the Bank's 185 member country shareholders. IDA accounts to about 40 % of the Bank's lending. Two basic types of loans and credits are offered by the World Bank through IBRD and the IDA, namely, Investment loans and Development policy loans. Another aspect about the World Bank facilitates the development and the progress of the projects undertaken by the organizations of many countries.

Though the World Bank is a popular financier, the role is not a limited one, as the Bank believes in analytic and advisory services also. Through this important function, the World Bank greatly contributes to the society.

About World Bank