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%.
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