ADB approves 1.5 billion USD for India to fight COVID-19
On April 28, 2020, the Asian Development Bank approved 1.5 billion USD loan to support the Indian Government in its actions against the spread of COVID-19 crisis. The fund is to be used in disease containments, social protection and disease prevention.
The loan sanctioned by the ADB is to be used for social protection of economically vulnerable sections and the poor. Recently, ADB had approved 2.2 billion USD support package for India. Apart from ADB, the AIIB (Asian Infrastructure Investment Bank) had allocated 500 million USD to India to strengthen its health care system. The World Bank has also announced 1 billion USD support to India.
India had earlier approached to ADB, AIIB and other world monetary institutions in order to get financial support.
The AIIB began its operations in 2016. It aims to alleviate health care pressures, to provide liquidity support and credit lines and finally to provide budgetary support to the governments.
The Asian Development Bank was established in 1966 to promote social and economic development in Asia. It was modeled so close to the World Bank. There were only 31 members at time of its establishment. However, currently there are more than 68 members.
Japan holds the largest share in the bank, followed by USA, China. India holds a share of 6.35%.
Category: International Current Affairs