World Bank Plans $870 Million In Loans To Iran; Donor Nations Could Stall
Posted on November 5, 2007 by muslimstoday
The World Bank has refused to bow to pressure from an influential U.S. lawmaker to stall on delivery of $870 million in loans to Iran scheduled for disbursement over the next three, according to reports Monday. World Bank President Robert Zoellick rejected arguments to suspend the loans made privately to him by Rep. Mark Kirk (R-IL) and World Bank officials have decided to go ahead with the loans, according to the New York Sun.
…The lending “will focus mainly on priority areas: low income housing, sewerage, urban upgrading and community-based infrastructure and employment creation schemes for the poor,” the abstract for the report says.
However, Zoellick has left the door open to donor nations asking the bank board to stop the loans. …However, the bank is dependent on its stakeholders for funds and although the loans don’t violate any terms of the United Nations sanctions against Iran, it is unclear if the donor nations will agree to spend the money, which means the decision on spending the money for the loans could go back to the board for reconsideration, the Sun reports. The Sun listed the donor nations in order as Americans, the Japanese, the Europeans and the Saudis.
Iran has a poverty rate of 40 percent, 15 percent unemployment and an inflation rate of 15 percent, according to the CIA World Factbook.
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