The World Bank Becomes Investment Fund
29/08/2007

New director of World bank, Robert Zoellick, measured to reconstruct work of the organization on the sample of investment funds, transfers Bloomberg.

Robert earlier held a post of vice-president in investment bank Goldman Sachs.

As considers Zoellick, new strategy will allow bank to become competitive and to depend on crises in the world financial markets less. So, the World bank will offer the services to those countries which credit history does not allow them to take on loan from private funds.

Besides the bank will try to revive such tool, as a currency swap (the agreement on an exchange of some volume of currency for the certain date). According to Zoellick, currency swaps will allow to protect an exchange rate of developing countries from acts of nature.

As an example of new products it also has named the joint insurance of the several countries of Caribbean basin from hurricane which has allowed them to reduce the insurance premium to 40 %.

Now to receive the credit in the World bank uneasy, writes agency. It is necessary for borrower to execute 38 conditions — for example, to lead privatization and to achieve liberalization of trade. Thus the interest rate in the World bank of all on two percentage items below, than at private funds. Eight more years back difference in rates reached 12 % of items.

Zoellick is the president of the World bank since July, 1st, 2007. It has replaced Floor Wolfowitz which has left the post because of scandal around of its protection the mistress.

More information you can find on site of World Bank