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15-billion ADB loan to India to fund COVID-19 emergency

  • IASbaba
  • April 29, 2020
  • 0
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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

In News:

  • 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. 

Key takeaways:

  • 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. 

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