India seeks vaccine loans from ADB, AIIB

India seeks vaccine loans from ADB, AIIB

Part of: Prelims and GS II – Health; International Relations 

Context The Government of India has applied for loans from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to procure as many as 667 million doses of COVID-19 vaccines.

Key takeaways 

• The ADB is expected to lend $1.5 billion and the AIIB around $500 million.
• The 667 million doses will have to be vaccines qualified by the World Health Organization (WHO).
• AIIB will co-finance the vaccine procurement.
• The vaccine purchase by the Government of India has been made under the ADB’s Asia Pacific Vaccine Access Facility (APVAX) initiative.

What is APVAX initiative?

• It was Launched in December 2020.
• It offers “rapid and equitable support to its developing member countries as they procure and deliver effective and safe COVID-19 vaccines”. 

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.
• Five largest borrowing countries are China, India, Pakistan, Indonesia and Bangladesh. 

The Asian Infrastructure Investment Bank (AIIB) 

• It is a multilateral development bank with headquarters in Beijing, China.
• It is a development bank with a mission to improve the economic and social outcomes in Asia.
• It has 103 approved members.
• It focuses on investment in sustainable infrastructure and developmental projects.
• Membership to the bank is open to all members of the Asian Development Bank or the World Bank.