ADB assures 2.2 billion USD loan to India
India had earlier approached Asian Development Bank and Asian Infrastructure Investment Bank for loans to fight against COVID-19. With India’s request, the ADB has assured a loan of 2.2 billion USD.
The funds are to be used to help alleviate poverty, and also address economic impacts on micro, medium and small size enterprises. GoI is to use these funds for emergency assistance, budget support and policy-based loans.
Earlier, in march 2020, the bank had announced 6.5 million USD of loan to all developing countries including India.
The Asian Development Bank was begun in 1966. However, India began to gain assistance from the bank only in 1986. Japan is the largest share holder of ADB followed by USA, China and India. India holds a share of 5.81% in the bank. The bank was established for social integration and regional integration. 80% of the investments from the bank are towards public sector.
Category: Economy & Banking Current Affairs