Storchak: Russia and the United States will not participate in the recapitalization of the world Bank


WASHINGTON, April 22. /TASS/. Russia and the United States will not participate in the recapitalization of the world Bank, the United States will retain a blocking stake, which will be reduced from 20% to 15%. The journalists said the Deputy Minister of Finance Sergey Storchak on the sidelines of the Spring meetings of the International monetary Fund (IMF) and world Bank (WB).

Shareholders of the world Bank group on Saturday, April 21, decided to increase the capital by $13 billion, Of which $7.5 billion are designed to the International Bank for reconstruction and development (IBRD), $5.5 billion for the International Finance Corporation (IFC). This will allow “to strengthen the capacities of the institutions fighting poverty in the world”, in particular in areas which need the most help, said the WB.

“We [Russia] believe that we will not participate. First, we do not really agree with the fact that the IDA (part of the WB group – approx. TASS) is supported afloat the profits earned by the Bank, and the Bank’s profit obtained at the expense of the most needy of shareholders – borrowers. And some recycling is very strange. We believe that if we are such large developed countries decide to engage in official development assistance, that is, near the capital replenishment of the IDA, let’s through this mechanism. This is our official position,” – said Storchak.

“On the other hand, the history of the prohibition of action of the world Bank in Russia known. In these circumstances, how can we agitate the leadership of the country, to go to Parliament with the budget or the ratification that we join the replenishment of the capital”, – said the Deputy Minister.

According to him, the United States also will not capitalize the WB, but succeeded in adopting a package deal under which the country will retain a blocking stake, which will be reduced from 20% to 15%.

“The scheme will be realized when all pay Americans a dime in IFC (member of WB group – approx. TASS) do not contribute, but this made it a condition that they should maintain a blocking stake, which now [is] 20%. If they don’t pay at completion, that share is eroded, so to save them a blocking stake, is expected to amend the articles of agreement, in which the blocking stake will be reduced from 20% to 15%, which will allow Americans to continue to impose its will. And this should go hand in hand”, – said the Deputy head of the Ministry of Finance.

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