World Bank warns of cash shortage

The World Bank has warned that it could run short of funds to help poorer countries cope with the impact of the global economic slowdown, because of the huge increase in demand on its resources.



The bank’s president, Robert Zoellick, issued the caution yesterday at the annual meeting of the World Bank and the International Monetary Fund in Turkey.



Mr Zoellick said the Bank has already depleted the additional $100 billion it was asked last year to put aside for developing countries.



He said the World Bank is in need of additional capital from its donors.



However some donors like Britain and the United States say they are reluctant to give more money until the World Bank makes greater progress on internal reform.