The World Bank could run out of money by end of 2010

As the global economic crisis continues, World Bank President Robert Zoelick said in Istanbul, during an annual meeting between the IMF and World Bank, that it could run out funds within the next twelve months.

According to President Robert Zoelick, the World Bank could run out of money within the next twelve months, reports the Daily Telegraph. The bank, which hands out money to low-income nations across the globe to invest in education, health care, agriculture and many aspects, could run dry by next year, “By the middle of next year we will face serious constraints.” Zoelick also implored developed nations to pour more money into the World Bank as he is campaigning for funds but he does realize that it will be extremely difficult to conduct such a duty because of the financial crisis, “We recognize that all countries are under budgetary strain and it is not an easy time to be asking for these things.” To present day, the World Bank has been forced to lend a lot more than the three-year $100 billion it was allocated last year. The funds have been spent mostly to allow vulnerable nations to stay afloat. During his opening speech at the IMF and World Bank annual meeting, Zoelick projected that the bank needs an increase of $11.1 billion in order to keep functioning, which would also be shared between the International Bank for Reconstruction and the International Monetary Fund, reports Tehran Times. By 2012, the World Bank estimates that new commitments could exceed $136 billion, according to The Globe and Mail, “We think we have stepped up to the plate. Our shareholders are going to have to decide how close they want to run us to the edge.” The World Bank Chief also added that if they receive the necessary resources then many of the low-level nations would expand and flourish domestically, which would make them less dependent on the United States and the United Kingdom. Loans are, indeed, becoming paramount. In the fiscal year to June 2008, it loaned out just under $14 billion but in one week in September it handed out $4.4 billion to India. According to the Associated Press, the Group of 20 rich nations agreed last week at the summit to increase their share by at least 3 percentage points by early 2010.