Question

Why does the world bank charge little or no interest on the loans it makes?

Answer 1

Why does the World Bank charge little or no interest on the loans it makes? The World Bank focuses on development, not making a profit. The World Bank is an international financial institute that will give loans to countries around the world for working on capital projects. Since the World Bank wants to help different countries grow, if they were to charge an excessive amount of interest that would be rather hard for countries to afford.

Answer 2

The main reason why the World Bank charges little or no interest on the loans at all is due to the fact that its purpose is to only help the countries in need when it comes to topics of economic growth.

Step-by-step explanation:

To begin with, the World Bank is an international financial institution that was created in 1944 in the Bretton Woods Conference with the principal purpose of only helping the countries in need by giving them loans in order to help those countries in topics related to the constructions after the Second World War and also to develop capital proyects to achieve economic growth. In addition, the most recently goal to achieve from the World Bank is to try to accomplish the reduction of poverty in the poorer countries around the world.