The World Bank to promote general economic development - also called the International Bank for Reconstruction
and Development (IBRD)
• Countries can borrow from the World Bank in two ways
1. under the IBRD scheme, money is raised through bond sales in the
international capital market
• borrowers pay a market rate of interest - the bank's cost of funds plus a
margin for expenses.
2. through the International Development Agency, an arm of the bank
created in 1960
• IDA loans go only to the poorest countries