World Bank, China to establish poverty reduction fund of worth $50 million

Beijing: The World Bank Group (WBG) and China signed an agreement here yesterday to set up a trust fund to help reduce poverty.

The fund aims to enhance the WBG-China cooperation and leverage financial and knowledge-based resources to help developing countries achieve inclusive and sustainable development, the WBG said in a statement, according to Xinhua news agency.

The fund worth $50 million is expected to start later this year and it will finance investment projects, operations, knowledge development and human resource cooperation at both global and regional levels.

"China is a strong partner in development and a strong partner for the WBG, and we share the commitment to ending poverty and boosting shared prosperity," said WBG President Jim Yong Kim, who is in China for a visit.

"I look forward to a continued strong, cooperative, and productive relationship, which will benefit developing countries around the world," he said.

China is the WBG's third-largest shareholder and an important contributor to the International Development Association (IDA), the institution's fund for the poorest.