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World Bank backs USD 13 bln capital increase

WASHINGTON, April 22 (KUNA) -- The World Bank endorsed a "historic" package of measures including a USD 13 billon paid-in capital increase that strengthens the global poverty fighting institutions ability to scale up resources and deliver to areas in need around the world.
"The boost in capital will be augmented by a broad range of internal measures including operational changes and effectiveness reforms, loan pricing measures, and other policy steps to create an even stronger World Bank Group," it said in a statement.
"Through the historic agreement endorsed today, our shareholders have clearly demonstrated a renewed confidence in global cooperation, and we greatly appreciate this strong support from our member countries," World Bank Group President Jim Yong Kim said.
The reform package curbs loans and charges more for high-income countries such as China.
"The package endorsed by the Development Committee follows through on shareholders' commitment for the World Bank Group to better assist all client countries in addressing global challenges while deploying scaled-up assistance to areas that most need financing," the statement said.
Secretary of Treasury Steven Mnuchin indicated that the US supports the increase because of the new lending rules.
"I look at this as a package transaction... we support a capital increase on the World Bank, along with the associated reforms that they're talking about making," Mnuchin told reporters.
He added that he hopes that Congress would approve the legislation. (end) ak.gta