Promoting Good Governance.

‘China should create wealth, Stop loaning them money,’ Trump tells World Bank

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THE United States Donald Trump has asked the World Bank to desist from assisting China with more loans in the coming years.

The World Bank on Thursday adopted a plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025.

With the ongoing trade war between the two world economic powers, the US president on Friday in a tweet criticised the new plan to furnish China with a new loan of $1. Billion to $1.5 billion come June 2020.

Trump had said China is economically stable and wealthy, hence, does not require international aid.

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“Why is the World Bank loaning money to China? Can this be possible? China has plenty of money, and if they don’t, they create it. STOP!” Trump lashed out in a Twitter post.

For the 2019 fiscal year, the bank had furnished the Asian country with $ 1.3 billion which is a decrease from $2.4 billion made available in 2017.

The plan calls for lending to “gradually decline” from the previous five-year average of $1.8 billion. However, the reduction rate of the bank obviously does not go well with the United States president who says the country can create its own wealth.

 

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