750 million USD loan approved by AIIB to India
On June 17, 2020, the Asian Infrastructure Investment Bank (AIIB) approved 750 million USD loan to India. The fund granted is to be used by the GoI to strengthen battle against the impact of COVID-19 on the poor and vulnerable.
The aid was cofinanced by the Asian Development Bank (ADB). The funds are to be used for improving informal sector, safety nets for the needy and strengthen heath care system of the country.
India and AIIB
The total sovereign loans to India that were already approved by AIIB amounts to 3.6 billion USD. This includes the recent emergency response of the bank that amounted to 500 million USD.
The loan allocated is the second for the country under AIIB COVID-19 Crisis Recovery Facility (CRF).
Crisis Recovery Facility
The AIIB does not have an exclusive policy-based financing. The bank is currently extending its support to its members through projects under CRF that are cofinanced either with the World Bank or ADB.
The CRF was set up with an initial investment of 5 billion USD. Later it was doubled to 10 billion USD in order to make sure the funds are available to the member countries to fulfill their financial, economic and public health pressures.
The AIIB has in total approved 4.05 billion USD under CRF. Of this, China received 355 million USD, 750 million USD to Indonesia and Philippines each, 250 million USD to Bangladesh and 500 million USD to Pakistan.
Month: Current Affairs - June, 2020