China leading creation of infrastructure and development banks

Developing countries need over $1 trillion a year in infrastructure. The figure greatly exceeded private-sector investment of about $150 billion a year.

China, which aired the idea of creating the Asian Infrastructure Investment Bank in October to fund projects in Asia, has said it would likely be the largest shareholder in the bank, with a stake of as much as 50 percent. The World Bank can work with any new infrastructure bank once it becomes a reality, be it a bank led by the emerging BRICS nations or the Asian Infrastructure Investment Bank, Kim said.

The BRICS group, comprised of Brazil, Russia, India, China and South Africa, is also in talks to create a $100-billion development bank and has reached broad agreement on the project, a senior Chinese diplomat said on Monday.

Kim reiterated the World Bank’s forecast for its economy to grow 7.6 percent this year before cooling a little to expand 7.5 percent in 2015.

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