15-billion ADB loan to India to fund COVID-19 emergency
Part of: GS Prelims and GS-II – International Groupings; Health & GS-III – Economy; Disaster Management
- The Asian Development Bank (ADB) has provided $15 billion loan to the Government of India to fund its immediate response to the coronavirus (COVID-19) pandemic
- The loan shall be used to deal with health and socio-economic impacts.
- The loan is approved by the ADB under its COVID-19 Active Response and Expenditure Support (CARES) Programme.
- The loan is the bank’s largest loan to India till date.
- The money will be spent to implement the containment plan and rapidly increase the test-track-treatment capacity.
- It will also be used to provide social protection to poor people over the next three months.
- India will also take the ADB’s technical support to strengthen its implementation framework and capacities to implement Pradhan Mantri Garib Kalyan Yojana.
Important value additions:
Asian Development Bank (ADB)
- It is a regional development bank.
- It was established on 19 December 1966.
- Headquarters: Mandaluyong, Philippines.
- It was established to promote social and economic development in Asia.
- Motto: ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia & the Pacific, while sustaining its efforts to eradicate extreme poverty.
- The ADB offers hard loans (currency) on commercial terms primarily to middle income countries in Asia and
- It provides soft loans (loan with a below-market rate of interest) to poorer countries in the region.
- Both types of loans are sourced from the bank’s ordinary capital resources (OCR).
- Five largest borrowing countries are China, India, Pakistan, Indonesia and Bangladesh.