Changes made by the World Bank to its lending model will see China eligible for fewer loans as the US pushes for more money to be allocated to poorer countries, the Financial Times reports.
The White House reached a deal with the World Bank last week in which the US will contribute a further $13 billion to the bank’s two principal bodies – the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation – on the condition that poorer nations see a larger share of annual loans issued.
Countries such as China will be moved into a bracket with higher interest rates for wealthier states.
China was the largest recipient of IRBD loans in 2017, borrowing $2.4 billion, or 11% of the bank’s total.
In exchange China’s voting share at the World Bank is expected to increase from 4.45% to 5.7%. The US, however, still holds a decisive voice with 16% of votes.