World Bank set to cut rates for big developing countries

Mumbai: The World Bank will cut interest rates it charges China, Brazil, Mexico and other big developing countries in a compromise deal that would also boost aid for the world''s poorest nations, the Wall Street Journal reported today.

As part of the compromise, the World Bank would contribute as much as $3.5 billion to its International Development Association unit, which provides grants and no-interest loans to the world''s 80 poorest nations, the Journal reported in its online edition citing bank officials.

The Journal said bank officials would not be identified speaking on the subject, because the compromise is still being refined and must be approved by the bank''s board.

The board is expected to meet again on the issue later this week, and the bank wants a final deal in time for its annual meeting October 19, the report said.