Which of the following Statements about the IBRD is/are True? I- It is the world’s largest development bank. II- It provides loans, guarantees, advisory services, and risk management products to middle-income and creditworthy low-income countries. III- Middle-income countries have no representation in its portfolio.

Solution

The IBRD calls itself a global development cooperative. It has a membership of 189 countries. It is the world’s largest development bank. It provides loans, guarantees, advisory services, and risk management products to middle-income and creditworthy low-income countries. Middle-income countries represent more than 60% of the IBRD’s portfolio. IBRD finances investments across all sectors and offers technical support and expertise at every stage of a project. IBRD deals only with sovereign governments and not private players. It also assists governments in augmenting the investment climate of countries, removing service delivery bottlenecks, and strengthening institutions and policies. IBRD sources most of its funds from the world’s financial markets.