Which one of the following is not the guiding principle of the World Bank regarding it’s lending…
A fundamental lending principle of the World Bank (IBRD) under its Articles of Agreement is that it does not tie its loans to procurement in any specific member country;…
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Which one of the following is not the guiding principle of the World Bank regarding it’s lending operations ?
Answer and explanation
Correct answer D
A fundamental lending principle of the World Bank (IBRD) under its Articles of Agreement is that it does not tie its loans to procurement in any specific member country; borrowers are free to use loan proceeds for international competitive bidding across member nations. Therefore, the statement that the Bank expects the borrowing country to spend the loan in a particular country is incorrect.
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UGC NET Commerce