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World Bank head says new entrants 'will be welcome'

By Lan Lan and Zhu Wenqian (China Daily) Updated: 2014-07-09 07:15

New multilateral development banks will not be rivals of the World Bank Group, according to its head, dispelling doubts that other lenders would try to compete with the globe's largest development bank.

Initiatives such as the Asian Infrastructure Investment Bank and BRICS Development Bank are not considered a threat to the World Bank, said World Bank Group President Jim Yong Kim.

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"World Bank welcomes new entrants," he said at a news conference on Tuesday in Beijing.

In October, Chinese leaders proposed building the Asian Infrastructure Investment Bank, aiming to boost funding for Asian countries in order to update their infrastructure.

The initiative was applauded by many countries but also sparked suggestions that the newcomer would be a rival to other lenders such as the World Bank and the Asian Development Bank.

Kim said these new participants will be complementary in reaching the goal of eradicating extreme poverty.

Kim said World Bank issues loans of approximately $60 billion annually to developing countries, which is far from enough to meet the demand for infrastructure growth worldwide.

It's necessary for other banks to lend funds to their regional economies, he said.

Needed: A 'strong' Chinese economy 

World Bank head says new entrants 'will be welcome'

 

 

 

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