UP Ibalon Bicol: World Bank running out of cash

World Bank running out of cash

10/04/2009 | Posted by mesiamd | Edit Post

As a result of shelling out money to poor countries and vulnerable nations during the financial crisis, the World Bank is reporting that the financial institution is running out of cash. If no money is poured in the Washington-based bank, it will experience serious financial problems by the middle of next year.

According to WB’s president Robert Zoellick, the bank needs a capital increase of about $11 billion (6.9 billion pounds) after it lent to poor countries more than it committed last year.

The World Bank will ask share holders to put in cash but Zoellick believes it would be hard for most countries which are all affected by the world’s most serious recession since World War II. Source: Telegraph.co.uk (10/02/09, Conway, E.) (Photo Credit: WB photo) =0=

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LABELS: World Bank, financial institution, economy, funding, Robert Zoellick, recession, Totie Mesia