Iran Slams World Bank for Withholding Loans

Iran has accused the World Bank of “discriminatory behavior” for withholding new development financing from the Islamic nation.

In a speech at the at the World Bank and International Monetary Fund plenary session Oct. 8, Shamseddin Hosseini, Iran’s economy minister, said development and humanitarian aid was not part of United Nations sanctions imposed against the nation for developing nuclear programs.

“The shocking point is that, based on inquiry made from the legal department of the World Bank, the developmental and humanitarian projects are excluded from the imposed sanctions on Iran,” Hosseini said, “In no section of the legal opinion reasons can be found to reduce relations and not financing such new projects.”

U.S. lawmakers have pressured the World Bank not to provide financing to Iran and have threatened to withhold U.S. contribution to the global lender if it approves new financing for the nation, Reuters reports.

“As we have informed the (Iranian) authorities, because of recent sanctions and uncertainty surrounding individual banks, we are reviewing all our disbursement arrangements,” a World Bank official told Reuters.

About the author

  • Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.