DEFINITION of 'International Bank Of Reconstruction And Development - IBRD'

A component of the United Nation's World Bank Group that was established in 1945 with the original mandate of providing funding towards the post-World War II rebuilding efforts. In the modern era, the IBRD's main objective is to provide loans and other financial services to less fortunate countries in hopes of reducing global poverty.

BREAKING DOWN 'International Bank Of Reconstruction And Development - IBRD'

The IBRD raises captial for the loans via the issuance of AAA rated bonds. Around $10-15 billion worth of bonds are issued on an annual basis. The IBRD has had its AAA credit rating since 1959.

RELATED TERMS
  1. World Bank Group

    Five international organizations dedicated to providing financial ...
  2. The World Bank

    An international organization dedicated to providing financing, ...
  3. Poverty Gap

    The average shortfall of the total population from the poverty ...
  4. Poverty

    A state or condition in which a person or community lacks the ...
  5. Federal Poverty Level - FPL

    The Federal Poverty Level (FPL) is an economic measure that is ...
  6. Poverty Trap

    A mechanism which makes it very difficult for people to escape ...
Related Articles
  1. Insights

    What Is The World Bank?

    You've heard of the World Bank, now find out how it functions and why some groups oppose it.
  2. Investing

    What Is the Value of a AAA Credit Rating? (XOM)

    Following the Exxon credit rating downgrade, investor's are asking is there any value in even having a AAA credit rating?
  3. Investing

    What Do AA+ And AAA Credit Ratings Mean?

    Moody's just downgraded China's credit rating. So, what does it matter if you hold a AAA or AA+ rating?
  4. Insights

    Understanding Poverty

    Poverty exists when a person’s or community’s basic needs are not being met because financial resources are lacking.
  5. Insights

    IMF, WTO and World Bank: How Do They Differ?

    From loans to Athens and trade deals in Asia to economic reports on the world’s most successful and most troubled economies, these organizations make headlines across the globe
  6. Personal Finance

    The Evolution of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  7. Trading

    Bretton Woods: How It Changed the World

    While the Bretton Woods system is no longer in place, it fundamentally changed the international monetary order.
  8. Investing

    Why Companies Issue Bonds

    When companies need to raise money, issuing bonds is one way to do it. A bond functions like a loan between an investor and a corporation.
  9. Personal Finance

    How Banks Set Interest Rates on Your Loans

    Many factors go into how banks set interest rates for loans. Use this information to negotiate the best possible rate when you're borrowing.
  10. Managing Wealth

    Unsecured Personal Loans: 8 Sneaky Traps

    If you are seeking a personal loan, be aware of these pitfalls before you proceed.
RELATED FAQS
  1. The Difference Between the International Monetary Fund and the World Bank

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ... Read Answer >>
  2. How did World War II impact European GDP?

    Understand the effect of World War II on the European gross domestic product and what foreign and domestic factors influenced ... Read Answer >>
  3. What was the Marshall Plan?

    The Marshall Plan was a U.S.-sponsored program implemented following the second world war to aid European countries that ... Read Answer >>
  4. What is the difference between a bank guarantee and a bond?

    Understand what a bank guarantee is and what a bond is, and which one is a debt instrument. Learn the differences between ... Read Answer >>
Hot Definitions
  1. Investing

    The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.
  2. Stagflation

    A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, ...
  3. Notional Value

    The total value of a leveraged position's assets. This term is commonly used in the options, futures and currency markets ...
  4. Interest Expense

    The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Pro-Rata

    Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the ...
Trading Center