The IBRD was created with the initial mission to finance efforts to rebuild war-torn European nations after World War II[5] with objectives shared by the future Marshall Plan. In 1947, the Bank granted its opening loan of $250 million ($2.6 billion in 2012[13]) to France to finance infrastructure projects. The Bank offers flexible loans of up to 30 years and tailored repayment planning. The IBRD also offers loans in local currencies. As part of a joint effort between IBRD and the International Finance Corporation, the Bank offers financing with or without state guarantees to sub-national companies. For borrowers who require quick financing for an unforeseen change, the IBRD introduces an option for the deferred drawdown, which serves as a line of credit with characteristics similar to those of the bank`s flexible credit program. [21] Among the World Bank Group`s credit enhancement and guarantee products, the IRD provides political guarantees covering countries` sovereign credit risk, partial credit guarantees to cover the credit risk of a sovereign government or sub-national entity, and partial risk guarantees for private projects, to cover a government`s non-compliance with its contractual obligations. IbRD`s Partrisk Guarantee for the Final World to cover private projects in IDA member countries against non-compliance with contractual obligations by sovereign governments. [22] The Bank offers a number of financial risk management products, including foreign exchange swaps, currency conversions, interest rate swaps, caps and interest funds, and commodity swaps. [23] In order to enable borrowers to protect themselves from disasters and other specific risks, the Bank proposes a deferred withdrawal option for disasters to ensure financing after a natural disaster or a state of emergency. In addition, disaster bonds are used to transfer catastrophic risks from borrowers to investors. [24] In fiscal 2019, IBRD notified loan commitments of $23.2 billion for 100 projects.
[15] The top ten borrowers were India, Indonesia, Jordan, Egypt, Argentina, China, Morocco, Turkey, Ukraine and Colombia. The most supported sector was public administration. The IBRD is owned and governed by its 189 member states, with each country represented on the Governing Council. The IBRD has its own management and its employees who carry out their normal activities. The Bank`s member governments are shareholders who can contribute and vote on their affairs. In addition to the contributions of its member countries, the IBRD acquires most of its capital by borrowing most of its capital on international capital markets by issuing bonds at a preferential interest rate because of its AAA rating. In 2011, IBRD provided a loan of approximately $26 billion, which represented only “a fraction of the $72 billion approved by the IMF in the form of a single-nation credit line, Mexico.” [11] In the early 2010s, the total number of capital investments in emerging countries from all sources exceeded $1 trillion per year. [11] According to the Institute of International Finance, “combined net investments by the World Bank and other international banks and development agencies” amounted to about $20 billion in 2011. [11] According to the Global Policy Journal, while IBRD and IDA have historically prioritized financing infrastructure projects, since the 1990s the Bank has had fewer loans for infrastructure projects for other development projects such as combating climate change, eradicating poverty and ensuring good governance. [14] The bank also generates income from return on equity and low loan margins.