How the world bank work and how they provide loan

1. The World Bank

2. What IS World Bank
• The World Bank was establish in 1944
• To rebuild post-World war II Europe under the International Bank for reconstruction
and Development (IBRD)
• The World Bank functions as an international organization that fights poverty
• By offering developmental assistance to middle-income and low- income countries
• Giving loans and offering advice and training in both the private and public sectors

3. Membership
• There are 189 member countries that are shareholders in the IBRD
• The arm of the WB. To become a member , however, a country must
first join the International Monetary Fund (IMF)
• The size of the World Bank’s shareholders, like that of the IMF’s
shareholders
• Depends on the size of a country’s economy
• The cost of subscription to the World Bank is a factor of the quota
paid to the IMF

4. Conti..
• Not member of world bank-
• Andorra
• Cuba
• Liechtenstein
• Monaco
• North Korea
• The two observer states at the UN
• Vatican City
• State of Palestine
Are also not members of the World Bank

5. • The Bank's First Loan:
• $250 Million to France" in The Bank's World, May 1987.

6. Conti..
• There is an obligatory subscription fee
• Which is equivalent to 88.29% of the quota that a country has to pay
to the IMF
• Country is obligated to buy World Bank shares(US$ 120,635 per share
• Reflecting a capital increase in 1988