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Banking & Finance

World Bank waives lending ceiling

The World Bank has decided to let China exceed its US$13.5bn limit on borrowing by any one country. In return, China will buy World Bank bonds with its foreign reserves to offset the increased risk to the bank.

China is the largest borrower from the World Bank and already owes it about US$12bn. Raising the limit will allow it to continue to borrow in order to maintain access to the bank's advice and expertise.

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