China bigger lender to developing nations than World Bank in 2009 and 2010

China competing with World Bank

China competing with World Bank

According to a report published in the Financial Times, China has lent more money to developing nations in the last two years compared to the World Bank.

The World Bank had lent $100.3 billion during 2009 and 2010 to the developing nations while China managed to lend at least $110 billion (£61.9 billion) to governments and private firms as loans and trade credits, showing China’s growing ambition to increase its global influence.

FT had compiled the data from public announcements made by Chinese government, banks or borrowers.

Chinese government off-late has been encouraging domestic companies to acquire assets like businesses or mines overseas, to ensure supply of raw materials and utilize the more than $ 2 trillion it has acquired by virtue of its cheap exports and subsequent trade surpluses with all its trading partners.

Chinese lenders such as the Bank of China, China Development Bank and Export-Import Bank of China have either extended trade credits or have funded infrastructure projects – to be executed by Chinese companies, in foreign countries such as Argentina and Ghana.

The loan terms extended by Beijing were more favorable that World Bank, prompting the global banker to devise ways to avoid a conflict, the paper reported.

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