13 billion dollars increase in the capital of the World Bank

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13 billion dollars increase in the capital of the World Bank

23/4/2018 12:00 am  WASHINGTON (Reuters) World Bank shareholders have approved a $ 13 billion increase in paid-up capital to boost China's share but with reforms to the lending system raising the borrowing costs of the higher middle-income countries, including China. The bank said the plan would raise total loans to about $ 80 billion in fiscal year 2019 from about $ 59 billion last year to an average of about $ 100 billion by 2030. The bank's chairman, Jim Young-kim, told reporters during the Spring Meetings of the IMF and World Bank "We have raised the World Bank's capacity more than twice," he said. "It's a huge vote of confidence, but the expectations are huge." The hard-earned capital increase under initial resistance from the Trump administration adds $ 7.5 billion to the paid-up capital of the concessional lending arm of the International Bank for Reconstruction and Development (IBRD).  IFC, which provides loans on commercial terms, earns $ 5.5 billion in paid up capital.  The International Bank for Reconstruction and Development has agreed to amend its lending rules to charge higher fees than high-income developing countries to discourage over-borrowing.  The bank was charging the same fees to all borrowers and US Treasury officials complained that it was lending too much to China and other emerging markets.  US Treasury Secretary Stephen Menuchin said earlier that he supported the increase in capital because of the reforms involved; the previous increase was the capital of the World Bank in 2010.