The World Bank, the international financial institution that provides loans and grants to developing countries, has announced that it will lend money to itself, in order to boost its own finances and credibility. The bank says that this is a smart move that will benefit both the lender and the borrower.
“We have decided to take advantage of our own low interest rates and favorable terms, and borrow money from ourselves. This way, we can increase our capital base, improve our credit rating, and demonstrate our confidence in our own projects and policies,” the bank said in a statement.
The bank plans to borrow $10 billion from itself, at an interest rate of 0.5% per year, for a period of 10 years. The money will be used to fund various development initiatives, such as poverty reduction, health care, education, and climate change mitigation.
The bank says that this loan will not affect its ability to lend money to other countries, as it has enough resources and reserves to meet its obligations. The bank also says that this loan will not create any conflict of interest or moral hazard, as it will follow the same rules and standards that apply to any other borrower.
“This is a win-win situation for us. We are lending money to a reliable and trustworthy partner, who has a proven track record of repaying its debts and achieving its goals. We are also borrowing money from a generous and flexible lender, who understands our needs and challenges. We are confident that this loan will enhance our reputation and performance, and set an example for other institutions to follow,” the bank said.