GEOG 130 Lecture Notes - Lecture 23: Preferential Creditor, Paul Wolfowitz
29 Apr 2019
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Document Summary
In 1999, was the major source of financing for developing in developing countries. There to lend money for developing projects. 1,900 projects worth over billion dollars. To promote private foreign investment by means of guarantees or participation in loans. To supplement private investment by providing, on suitable conditions. Must buy shares to participate in world bank. Minimum amount of shares one must buy is based off of the global economy. Advisors and experts representing the bank analyse the prospective borrower can meet conditions stipulated by the bank. Borrower must be unable to secure loans from an outside source. Borrower must show that the project is technically feasible and economically sound. To ensure repayment, the borrower must guarantee repayment. After the loans have been issued, the world bank requires updates on the projects. Only 8. 5% is deposited, remaining money is only deposited when needed.
