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Functions and Objectives of International Bank for Reconstruction and Development (IBRD)

(i) Provision of Long Term Loans for Development

It gives short and long term loans to member countries to enable them carry out development of social amenities and also major capital projects. The rate of interest is very low. Repayment of loan lasts for about five to twenty-five years.

(ii) Provision of Assistance for Expansion and Development

Loans are made available to member countries to assist them, expand, as well as carry out economic development especially rehabilitation of their war ravaged economies.

(iii) It Gives Expert Advice to Member Countries

The bank gives expert advice on matters of finance and economic development and development planning in the country concerned.

(iv) Provisions of Technical Assistance to Member Countries

The World Bank gives technical assistance in the form of personnel mainly to developing countries that require such assistance to carry out certain projects.

(v) Provision of Foreign Private Investment

The World Bank sometimes guarantees such foreign investments by going into partnership with the foreign investors.

 

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