The countries agreed on a plan to increase the Bank's $ 13 billion historic capital

Countries that contribute capital to the World Bank on April 21 passed a historic boost to the bank after the United States supported a package of reforms that would limit borrowing and raise fees to countries. have higher incomes like China.

WB President Jim Yong Kim said that China, like any middle-income country, did not expect higher charges, but agreed to increase its borrowing. He said that countries' unanimity in raising capital, as well as increasing the contribution and voting power of emerging markets such as China, showed a great deal of confidence in the institution after three years of talks. Difficult. Kim said the increase in capital was necessary because of the global financial crisis, the World Bank was facing the need for funding to address a number of new challenges in poor countries such as climate change, disease, disease. Of the $ 13 billion raised, $ 7.5 billion was allocated to the International Bank for Reconstruction and Development and $ 5.5 billion to International Finance Corporation (IFC), two WB's lending institution. He added that the increase would allow the Bank to raise its average loan to $ 100 billion a year by 2030, from $ 60 billion in 2017 and an estimated $ 80 billion by 2018. Countries will have five years to raise capital, but may apply for an extension of three years. The latest capital increase of the World Bank is in 2010, with the addition of $ 5 billion to WB's capital and $ 200 million to IFC. The United States, the biggest contributor to the World Bank, opposed the bank's request last October, and the administration of President Donald Trump said multilateral financial institutions should restrict lending to those countries. It can meet the financial needs for development like China. However, US Treasury Secretary Steven Mnuchin said the country favors raising capital on the back of growing lending regulations. In a statement to the World Bank's Executive Board, he welcomed the focus of lending to poorer countries, as it aims to allocate higher-yielding and higher-yielding loans. richer countries. China's deputy finance minister, Zhu Guangyao, said the country supported the increase in the World Bank's financial resources, but was afraid of some changes in its funding policy and hoped the World Bank would have A careful consideration in the case of individual countries when implementing capital allocation policies is to ensure that they do not interfere with the cooperative process between the bank and middle-income countries at the threshold.