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World Bank Changes Policies

The World Bank this week revealed that it has doubled its funding to be made available for the world`s poorest countries in order to finance development in the fiscal year 2006-2007. In a statement released from its office in Cairo, Egypt, the World Bank said it has ordered the release of $950 million from its income to the International Development association, a WB affiliate which processes grants and interest-free loans to the world`s poorest economies.

The bank scrapped the front-end fees charged on loans from the International Bank for Reconstruction Development, a unit of the World Bank that provides financial assistance to poor and middle income countries. At the same time, the World Bank is calling on donor countries to fulfill their pledges to provide more assistance in the fight against global poverty.

The figure is double the amount released during the previous fiscal year and the first time the bank drew money from its income coming from its private sector arm. According to Egypt`s official state-run news agency, the World Bank has decided to increase its credit facility to credit-worthy poor and middle-income economies by waiving a fee charged to borrowers.