Functions and resources of the world bank, Microeconomics

Assignment Help:

Functions and Resources of the Bank 

The main functions of the Bank are as follows:

•  to assist in reconstruction and development of the territories of it member-governments by facilitating investment of capital for productive purposes; 

•  to promote foreign private investment by guarantees or through participations in loans and other investments of capital for productive purposes; 

•  where private capital is not available on reasonable terms, to make loans for productive purposes out of its owned resources or out of the funds borrowed by it; and 

•  to promote the long-range growth of international trade and the maintenance of equilibrium in the balance of payments of members by encouraging international investment for the productive resources of members.  

Resources of the Bank consist of the capital and borrowings. The capital of the Bank is contributed by its 184  member-countries.

The five largest shareholders of the Bank are: (i) USA, (ii) Japan, (iii) Germany, (iv) Great Britain and (v) France. India is the sixth largest contributor. The management of the Bank is on the same lines as that of the IMF. Before granting or guaranteeing a loan, the Bank considers the following matters: 

•  The project for which the loan is asked has been carefully examined by a competent committee as regards the merit of the proposal; 

•  The borrower has reasonable prospect for repayment; 

•  The loan is meant for productive purposes; and 

•  The loan is meant to finance foreign exchange requirements of specific projects of reconstruction and development. 

The rate of interest on Bank loans is determined by adding a spread of ½ of 1 per cent atop the "pool rate" of outstanding borrowing of the Bank. 


Related Discussions:- Functions and resources of the world bank

Gross domestic product and growth rates, Gross Domestic Product and Growth ...

Gross Domestic Product and Growth Rates: The rate of growth of the secondary and tertiary sectors has been more than double that of the primary sector, with the secondary sect

Microeconomics, Consider the market for purple magic markers. The demand fo...

Consider the market for purple magic markers. The demand for purple magic markers is perfectly elastic and the supply is upward sloping. If sellers of purple magic markers are taxe

Income and Substitution effect for normal goods, Mamun has a weakly income ...

Mamun has a weakly income of 600 dollars. Price of chocolate is 5 dollar and price of potato is taka 10. Both are normal goods. Show the income and substitution effect for each of

Marxisism, Hi, Can you help with writing journals homework? It should be in...

Hi, Can you help with writing journals homework? It should be in english as a second language. Ten pages different topics about Karl Marx economics views. I will give you the t

Determination of fixed exchange rate, DETERMINATION OF FIXED EXCHANGE RATE:...

DETERMINATION OF FIXED EXCHANGE RATE: In the flexible exchange rate regime, exchange rates are highly volatile which leads to uncertainties in the international payments/trans

Property concepts , Normal 0 false false false EN-IN ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Differentiate between nominal and real exchange rate, Differentiate between...

Differentiate between nominal and real exchange rate.  Nominal exchange rate is the rate which actually prevails in the foreign swap market. The real exchange rate is the rate

Monopolistic competition, Lorie teaches singing.Herr fixed cost are $1000 a...

Lorie teaches singing.Herr fixed cost are $1000 a month,and it costs her $50 of labor to give one class.the table shows the demand schedule for lorie''s singing lessons. Price

Explain and illustrate, explain and illustrate the changing demand for big ...

explain and illustrate the changing demand for big mac using indefference curve and budget line

Contingent commodity framework, 1) Lynne's income is £2, 000 and she is ris...

1) Lynne's income is £2, 000 and she is risk averse. The probability of someone slipping on her stairs is 1/8. If this happens, she will be sued for £1, 000 and will have to pay th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd