ADB considering largest-ever loan of $1 bn for rural finance

New Delhi, Nov 28 (UNI) The Manila-based Asian Development Bank (ADB) today described the suicides by farmers in India as a ''catastrophe and tragic'' and said its Board will soon take up providing the largest ever loan of one billion dollars for rural finance.

''The ADB Board at its meeting on December 8, 2006, will consider the proposal,'' ADB Managing Director General Rajat M Nag told a news conference here.

He was optimistic that the Board will approve the proposal, which will go a long way in ameliorating the condition of the farmers and said the project would be for a period of three years.

Mr Nag said he was constrained not to give out too many details about the project, but indicated that it will involve strengthening of the cooperative financial sector.

He said this would be the largest ever loan given to India adding that lack of institutional credit was an important component which results in the difficulties of farmers.

Mr Nag said agriculture and infrastructure would continue to be the thrust areas of lending to India, which is in the region of two billion a year.

UNI GS PV PM1325