The Bank is managed by a Board of Governors. Each member country appoints one member on the Board which meets once in a year.
The Board delegates its power to Board of Executive Directors consisting of 24 members and it meets once in a month.
Nineteen members are elected by the Board of Governors and five members are nominated by the five largest subscribers.
Criteria for Assistance
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While extending assistance, the Bank is guided by the following principles:
(i) The repayment prospects of the loan are first-assessed.
(ii) Economically and technically sound projects are preferred.
(iii) The Bank meets the foreign exchange content and other resources are to be raised domestically.
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(iv) The Bank monitors the progress of projects financed by it.
(v) An effort is made to promote local private enterprises. World Bank provides loans upto 20 years at a rate of interest slightly below the commercial level.
Loans are generally given on the guarantee of the Government of the borrowing country. Poverty reduction is the Bank’s first priority.