INTERNATIONAL BANK FOR RECONSTRUCTION &

DEVELOPMENTCHRISTIAN C. VANESSA

IBRD

The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group and is headquartered in Washington, D.C., United States. It was established in 1944 with the mission of financing the reconstruction of European nations devastated by World War II. The IBRD and its concessional lending arm, the International Development Association, are collectively known as the World Bank as they share the same leadership and staff. The institution provides a combination of financial resources, knowledge and technical services, and strategic advice to developing countries, including middle income and credit-worthy lower income countries.

MEMBERSHIPAll countries which are members of IMF are members of World bank.

A country holding the membership of bank must subscribe to the charter of the bank.

If a country resigns its membership, it is required to pay back all loans granted to it through interest on due date.

Each member of the world bank has a capital subscription which is similar to but not identical with its quota in the fund.

The member’s subscription also measures roughly its voting power, but again the smaller nations have a slightly higher vote.

ROLESThe International Bank for Reconstruction and Development (IBRD) is a global development cooperative owned by its 188 member countries. As the largest development bank in the world and part of the World Bank Group, IBRD has two main goals: to end extreme poverty by 2030 and to promote shared prosperity in a sustainable manner. It seeks to achieve these goals primarily by providing loans, guarantees, risk management products, and expertise on development-related disciplines, as well as by coordinating responses to regional and global challenges.

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Supports long-term human and social development that private creditors do not finance

-Preserves borrowers' financial strength by providing support in times of crisis, when poor people are most adversely affected

-Promotes key policy and institutional reforms (such as safety net or anti-corruption reforms)

Creates a favorable investment climate to catalyze the provision of private capital

Facilitates access to financial markets often at more favorable terms than members can achieve on their own

THE IBRD;

SERVICESThe IBRD provides financial services as well as strategic coordination and information services to its borrowing member countries. The Bank only finances sovereign governments directly, or projects backed by sovereign governments. The Bank offers flexible loans with maturities as long as 30 years and custom-tailored repayment scheduling. The IBRD also offers loans in local currencies. Through a joint effort between the IBRD and the International Finance Corporation, the Bank offers financing to subnational entities either with or without sovereign guarantees. the IBRD offers policy-based guarantees to cover countries' sovereign default risk, partial credit guarantees to cover the credit risk of a sovereign government or subnational entity, and partial risk guarantees to private projects to cover a government's failure to meet its contractual obligations. To help borrowers protect against catastrophes and other special risks

FUNDINGThe IBRD is owned and governed by its member states, but has its own executive leadership and staff which conduct its normal business operations. The Bank's member governments are shareholders which contribute paid-in capital and have the right to vote on its matters. In addition to contributions from its member nations, the IBRD acquires most of its capital by borrowing on international capital markets through bond issues. The Bank raised $29 billion USD worth of capital in 2011 from bonds issued in 26 different currencies. In 2011, the IBRD sought an additional $86 billion USD (of which $5.1 billion would be paid-in capital) as part of a general capital increase to increase its lending capacity to middle-income countries. The IBRD expressed in February 2012 its intent to sell kangaroo bonds (bonds denominated in Australian dollars issued by external firms) with maturities lasting until 2017 and 2022.

GOVERNANCEThe IBRD is governed by the World Bank's Board of Governors which meets annually and consists of one governor per member country (most often the country's finance minister or treasury secretary). The Board of Governors delegates most of its authority over daily matters such as lending and operations to the Board of Directors. The Board of Directors consists of 25 executive directors and is chaired by the President of the World Bank Group. The executive directors collectively represent all 187 member states of the World Bank. The president oversees the IBRD's overall direction and daily operations.[As of July 2012, Jim Yong Kim serves as the President of the World Bank

global challenges for IBRD?

Population growth Elimination of global poverty Global life expectancy Aid to education

Lending operations The IBRD lends to member governments, or, with

government guarantee, to political subdivisions, or to public or private enterprises.

The IBRD normally makes long-term loans, with repayment commencing after a certain period.

The length of the loan is generally related to the estimated useful life of the equipment or plant being financed.

Since July 1982, IBRD loans have been made at variable rates. The lending rate on all loans made under the variable-rate system is adjusted semiannually, on 1 January and 1 July, by adding a spread of0.5% to the IBRD's weighted average cost during the prior six months.

REFERENCE

-www.worldbank.org-www.wikipedia.com/ world bankhttp://www.bicusa.org/en/Institution.Structure-International bank for reconstruction and development (ibrd) - The World Bank Group - located, product, average, issues, growth, annual, system. 2015. International bank for reconstruction and development (ibrd) - The World Bank Group - located, product, average, issues, growth, annual, system. [ONLINE] Available at: http://www.nationsencyclopedia.com/United-Nations-Related-Agencies/The-World-Bank-Group-INTERNATIONAL-BANK-FOR-RECONSTRUCTION-AND-DEVELOPMENT-IBRD.html. [Accessed 26 November 2015].

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