$1.5 Billion ADB Loan to India

• 29 Apr 2020

Why in News

Recently, the Asian Development Bank (ADB) has provided a $1.5 billion loan to India to fund India’s immediate response to the Covid-19 pandemic.

• Earlier, the Asian Development Bank (ADB) had assured Indian government of $2.2 billion (about Rs 16,500 crore) support to fight against the Covid-19 pandemic.

Key Points

• The loan will help the Central government to focus on immediate priorities such as:
  
  • Covid-19 containment and prevention.
  • Social protection for the poor and economically vulnerable sections of the society.
• The loan has been provided under ADB’s Covid-19 Active Response and Expenditure Support (CARES) Program. The CARES Program 
  
  • support the government’s stimulus package geared to expand existing social assistance programs,
  • boost resources for Covid-19 prevention and control,
  • safeguard productive sectors and workers from the economic downturn.
• The CARES Program is funded through the Covid-19 Pandemic Response Option (CPRO) under ADB’s Countercyclical Support Facility.
  
  • CPRO was introduced as part of a $20 billion package approved by ADB on 13^th April, 2020 to assist its developing member countries in their fight against Covid-19.
• The CARES Program will be implemented through a country engagement framework focused on policy dialogue and monitoring of the government’s countercyclical strategy and measures.

Asian Development Bank

• ADB is a regional development bank established on 19^th December 1966.
• ADB now has 68 members, 49 from within Asia.
• As of 31 December 2019, ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
• It aims to promote social and economic development in Asia.
• ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
• ADB is headquartered in Manila, Philippines.

Source: TH