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

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2026-03-16 15:55

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The World Bank charges little to no interest on its loans primarily to support development in low-income countries, where high-interest loans could hinder economic growth. By offering concessional loans, the World Bank aims to promote sustainable development and reduce poverty. Additionally, these favorable terms help countries invest in critical infrastructure and social programs, ultimately fostering stability and economic resilience.

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