WB lends record $29b during fiscal 1999

WB lends record $29b during fiscal 1999

WASHINGTON (Reuters): The World Bank said on Tuesday it approved a record US$29 billion in loans during fiscal 1999 with Argentina, Indonesia, China and South Korea securing the largest portion of the spoils.

Of the $29 billion the World Bank agreed to lend during the year, $24 billion was disbursed. The total surpassed the previous record of $28.6 billion set in 1998.

Overall the East Asia and Pacific region secured the largest chunk of World Bank lending, securing commitments of $9.76 billion in 1999, up from $9.62 billion in 1998.

East Asia was battered by the financial crisis that started in Thailand in 1997 before spreading to the region and beyond.

Jean-Michel Severino, vice president for East Asia said the large commitments to the area showed, "how deeply the World Bank was engaged in helping East Asia throughout the crisis."

Commitments to Latin America and the Caribbean totaled $7.74 billion, up from $6.04 billion the prior year. Europe and Central Asia accounted for $5.29 billion in commitments compared with $5.22 billion in 1998.

The Middle East and North Africa enjoyed a rise to $1.58 billion from $968 million in 1998.

Commitments to Africa dipped to $2.07 billion from $2.87 billion.

Commitments also fell in South Asia, which secured $2.56 billion, 71 percent of which was concessional lending, down from $3.86 billion in 1998.

Argentina was the single largest borrower in 1999 with commitments totaling $3.23 billion, Indonesia was the second largest borrower at $2.74 billion. China was the third largest borrower with $2.1 billion, South Korea secured $2.05 billion and Russia secured $1.9 billion.

Brazil was the sixth largest beneficiary of World Bank funding at $1.69 billion, Thailand the seventh largest at $1.3 billion, while India secured $1.05 billion.