Reuters, June 18 (excerpts) – U.S. lawmakers considering new funding for the World Bank on Wednesday sought assurances that the development agency will not provide loans to Iran, which Washington accuses of seeking to develop nuclear bombs.

House of Representatives Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, and Brad Sherman, a California Democrat, raised the issue in a hearing on the Bush administration’s request for $3.7 billion to replenish the World Bank’s main fund for poor countries, the International Development Association (IDA).

The United States is the second-largest donor to IDA, but not does not contribute to a separate fund which lends to wealthier middle-income countries such as Iran and China. That money is raised on international capital markets.

According to the World Bank, loan disbursements totaling $745 million for Iran were delayed in late 2007 because it had difficulties finding banks in Iran to make the payments because of international sanctions.