WB approves $4.3bn loans to India

Washington, Sep 23: The World Bank on Tuesday, Sep 22, approved $4.3 billion in loans to India to strengthen its economy and support infrastructure sector.

Of this $2 billion is Banking Sector Support Loan, which will provide budgetary support to India, media report said.

The Washington-based lender said, "The four projects worth USD 4.3 billion to India are designed to support the government's infrastructure agenda and bolster its economic stimulus program."

The bank projected a 'realistic' growth rate of between 5.5 and 6.5 percent for 2009-10 for Asia's third-largest economy, after Japan and China.

"This is a crucial time to support India," Roberto Zagha, World Bank country director for India, said in a statement.

"While the worst of the crisis seems to be behind us, doubts linger about the strength of the comeback, partly because the strength of the global recovery is uncertain. Today's support will help maintain credit growth and continued infrastructure investments," he said.

The loan is for 30 years and includes a five-year grace period in which India is exempt from repayments.

OneIndia News