$300-Million Loan to China OKd
The World Bank approved a $300-million loan for China on Tuesday, the bank’s largest loan to China since tanks suppressed the pro-democracy movement there last June.
Approval came despite protests in Congress and from Chinese student groups in this country.
The United States contributes more than any other country to the bank, which is the biggest source of aid to the Third World. Patrick Coady, the U.S. executive director, is one of the 22 members on the board that met Tuesday and approved the loan behind closed doors.
Until last year, China was one of the bank’s two biggest borrowers, along with India. It borrowed $1.35 billion in the 12 months that ended last June 30. Since then it has borrowed $140 million.
The new loan will go largely for planting trees in 15 Chinese provinces. China can take 40 years to repay it at less than 1% interest a year.
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