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No direct funds for rebels, says WB
By Michael de Silva
WASHINGTON - The World Bank has reiterated that it provides funds and technical support only to recognised member countries -- not to rebel movements.

"We recognize only the sovereign governments of our member countries and we work with them where possible to address the plight of those in disputed or conflict-affected areas," World Bank's media relations manager Damian S. Milverton told The Sunday Times.

When asked about World Bank policies relating to the reconstruction of rebel-held territories, he said: "People come first, and we try our utmost to help when we can, while respecting each nation's sovereignty".

His response came after The Sunday Times asked for his comments on remarks made in an interview last week by Peter Harrold, World Bank Country Director in Sri Lanka. Mr. Harrold had said, “... there is such a thing as the LTTE-controlled area, an unofficial state....”

"We are a reconstruction and development agency, with 184 member countries, and we work with - and through - the recognized governments of our borrowing members," Mr. Milverton said.

Another senior World Bank official, speaking on condition of anonymity, told the Sunday Times: "As you would no doubt be aware, we can only provide funds and technical advice to internationally-recognized governments. This is why we had to wait until the UN recognized the authority in Iraq before we could begin to work with it''.

But he added: "We very well may conduct projects in disputed areas if all sides to the dispute agree and the physical risk is acceptable". He also pointed out that there had been some confusion about the Bank's position on this point, but regardless of what might have been misunderstood, "our policy remains that we provide support only to recognized member countries".

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