World Bank President: "Trump is a Person Who Understands the Value of International Finance"

Interview with Ajay Banga, President of the World Bank

Ajay Banga, President of the World Bank (WB), evaluated former U.S. President and Republican presidential candidate Donald Trump as a person who understands the value of international finance.

On the 15th (local time), in an interview with major foreign media, President Banga was asked about the potential impact on the World Bank if former President Trump were to return to the White House. He emphasized, "He is well aware of the leverage power to create bigger mechanisms with the dollar," and that he understands that the expansion of global markets through loans from international financial institutions ultimately paves the way for American companies.

[Image source=Reuters Yonhap News]

Former President Trump has been critical of climate change responses through international organizations, such as withdrawing from the Paris Agreement during his presidency. The policy proposal book "Project 2025" by the conservative U.S. think tank Heritage Foundation, considered a blueprint for a second Trump administration, includes calls for the U.S. to withdraw from the World Bank and the International Monetary Fund (IMF). However, Trump has denied any connection to Project 2025 ahead of the election.

Regarding this, President Banga stated, "Trump was actually the one who approved the capital increase of the International Bank for Reconstruction and Development (IBRD) within the World Bank Group," and argued, "Ultimately, the important thing is that he understands the value of loan development." Former President Trump supported a $13 billion capital increase for the World Bank during his tenure in 2018.

The media explained, "At that time, Trump's decision expanded China's voting power within the World Bank, but reforms were also implemented that imposed higher loan interest rates on China and other middle-income countries."

As an Indian-American who rose to the position of CEO of Mastercard, President Banga was appointed as World Bank President last year by U.S. President Joe Biden. He has a connection with Vice President Kamala Harris, having jointly led job creation and economic development projects in Central America through the Central America Partnership (PCA). He is also mentioned as a potential candidate for the next Treasury Secretary in the Harris administration, alongside Janet Yellen, Secretary of the Treasury; Gina Raimondo, Secretary of Commerce; and Jamie Dimon, Chairman of JP Morgan.