The World Bank’s board has agreed to grant China a low-interest annual loan of between $1 and $1.5 billion through June 2025, according to CNBC.
The World Bank said on Thursday that its board members have “expressed broad support” to aid China with up to $1.5 billion annual lendings through 2025. The Bank has published its five-year lending strategy plan on the same day.
This happened despite strong objections from US Treasury Secretary Steven Mnuchin, who earlier said that China should be expelled from the World Bank’s supportive loan program.
The US Treasury’s representative on the World Bank board had opposed the China lending plan on Wednesday, arguing that the bank should “graduate” China from its concessional loan programs for low- and middle-income countries, according to the CNBC report.
The World Bank said its lending to China would decline gradually under the “country partnership framework” plan. China received $1.3 billion in 2019, compared to $2.4 billion in 2017.
“Lending levels may fluctuate up and down from year to year due to normal pipeline management based on project readiness,” said the World Bank in its five-year strategy plan.
Mnuchin expressed his concerns over the slow pace at which the World Bank is “gradually declining” lending to China, reported CNBC.
Other US lawmakers are also concerned. “The World Bank, using American tax dollars, should not be lending to wealthy countries that violate the human rights of their citizens and attempt to dominate weaker countries either militarily or economically,” said Senate Finance Committee Chairman Charles Grassley.
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