16th Nov 2009 by Amelia Timbers
The world bank is actually two organizations that have separate funding. The IBRD, or International Bank for Reconstruction and Development, lends money to developing companies by selling very high quality bonds (Triple A) to institutional investors internationally. They also make money by lending the capital generated by its 186 "member" countries, which act like shareholders. The IBRD also retains a nearly $200M reserve of callable capital, or shareholder country money that can be used to shelter lenders from debtor country default, preserving the strength of its credit rating.
The World Bank's second half, the International Development Association (IDA) is funded by forty of it's member countries annually, supplying capital for its no-low interest loans and development projects. They also receive money by the repayment of previously loaned funds.
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