The World Bank on Thursday confirmed that it plans to phase out its lending to China by 2031, according to the organisation’s new country partnership framework for the world’s second-largest economy.
AFP first reported that the multilateral lender would be making the move last month.
“IBRD lending will continue to phase down during the CPF period, not exceeding US$ 2 billion,” the World Bank Group (WBG) said in a post on its website, referring to lending through the International Bank for Reconstruction and Development.
A CPF is a mutually agreed plan between the bank and a client country outlining development priorities for a multi-year period.
“In principle, no further borrowing is expected from IBRD by the end of the CPF period.”
The WBG said the five-year CPF “marks a new phase in a 45-year partnership,” as China moves from needing financing to primarily requiring technical assistance and knowledge sharing.
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