New deal from World Bank
The World Bank wants to set up a deal that would give financial aid to poor countries. John Dimsdale reports this would also involve a substantial cut in interest rates.
World Bank headquarters in Washington, D.C. (Win McNamee / Getty Images)
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Doug Krizner: The World Bank holds its annual meeting in Washington next month. And before then, the Bank's new president hopes to have a deal in place -- one that would get more financial aid to poor countries. John Dimsdale reports.
John Dimsdale: When the World Bank lends to fast-developing countries like India and China, it earns income to help poorer countries like Tanzania and Haiti.
But the Bank is losing its good customers to private lenders. To keep more of their business, the Bank is proposing a substantial cut in interest rates.
Stephen Hayes, the CEO of the Corporate Council on Africa, likes the idea:
Stephen Hayes: Certainly it's just highly creative. There will be more money available if this initiative is accepted for development in the poorer countries.
And some of the newly emerging poor countries would welcome the lower interest rates too, says Jo Marie Griesgraber with the New Rules for Global Finance Coalition.
Jo Marie Griesgraber: For example, Ghana very much wants more money for development. And they cannot afford to borrow from the World Bank, because they're too expensive.
World Bank president Robert Zoellick, a former investment banker, says he's trying to make the World Bank's loans more competitive.
In Washington, I'm John Dimsdale for Marketplace.
