(c) Loans are granted after preliminary discussions with the parties and a critical examination of the project. The bank’s help is given only after it is satisfied that the project is a sound one.

(d) The bank gives technical advice to the borrowers and for this purpose engages experts. (e) The bank promotes foreign investments by guaranteeing loans made by other organizations. The bank’s duty is to supplement and not to supersede the flow of private risk capital. (f) The World Bank’s capital is too small to provide for the development need of the entire world. It has therefore set up a number of subsidiary organizations for further finance. (g) The bank has certain miscellaneous functions. It can buy an sell security issued or guaranteed by it or in which it has invested. But it must obtain the approval of the member in whose territories the purchase or sale will take place.

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It can guarantee securities in which it has invested. It can buy and sell other securities if approved by three fourth of the directors’ voting power. It can borrow the currency of any member with the approval of that member. The bank or its officials must not interfere in political matters. Note: The articles of the bank require that except in special circumstances, Bank loans must be for specific projects of reconstruction or development.

The projects selected should be those, which are must useful and urgent for, increasing the productive powers of the borrowing country. Except in special circumstances, bank financing should be intended to meet foreign exchange rather than domestic currency outlays.