China ahead of World Bank in loans to developing nations

Thursday, 20 January 2011 00:09 - - {{hitsCtrl.values.hits}}

Beijing (Reuters): China has lent more money to developing nations than the World Bank in the past two years, the Financial Times said on Tuesday, underlining Beijing’s ambitions to increase its global influence.

China lent at least $ 110 billion to governments and firms in other developing countries in 2009 and 2010, surpassing the $ 100.3 billion by the World Bank, the newspaper said.

The statistics were compiled from public announcements by banks, borrowers or China’s Government, it said.

The Chinese Government, sitting on more than $ 2 trillion in foreign exchange reserves, has since 2009 stepped up its backing of state companies scouring the globe for assets and raw material supplies.

Banks such as China Development Bank, Export-Import Bank of China and Bank of China have extended loans in return for guaranteed oil supplies and also lent money for infrastructure projects in countries such as Ghana and Argentina.

It said the loans offered more preferential terms than the World Bank on deals that were supported by Beijing.

That has led the World Bank to look for ways to work with Beijing to avoid rivalry on such loans, the paper said.