Wednesday, April 29, 2020

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.

Highlights

  • 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.

AIIB

  • 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.

ADB

  • 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%.

No comments:

Post a Comment