Many borrowers are turning away from the Bank, resulting in loans being repaid faster than new ones can be disbursed. Outstanding loans have dropped to a six-year low. But because of the repayments, the Bank has amassed the largest reserves of financial resources in its history. In recognition of this, and to get loan volumes up, it is starting to lower the fees it charges borrowers. Critics say the turnabout in financial performance has more to do with overstating its financial risks in 1998 as it sought to increase fees than with current performance.
The IMF and the World Bank are increasingly engaged with the challenge of addressing how tax avoidance and evasion affect developing countries, but need to address the role played by multinational enterprises and tax havens in exacerbating inequality and undermining countries’ domestic revenues.
Donate to the Bretton Woods Project
The Bretton Woods Project is an ActionAid hosted project (UK registered charity no. 274467).