World Bank lends 9.3 billion to India in FY 10
New Delhi, June 24 (ANI): The World Bank is committed to supporting India's development agenda as is evident from the record annual lending of 9.3 billion dollars for the current financial year.
According to the World Bank website, the total expected lending this year includes 2.6 billion dollars as interest-free credits from the International Development Association (IDA) and 6.7 billion dollars in the form of long term, low interest loans from International Bank of Reconstruction and Development (IBRD).
Speaking to media persons here on Wednesday, Roberto Zagha, World Bank Country Director for India said: "This year we have reached the amount of 9.3 billion dollars combining both IDA and IBRD. Even though it is record amount for the bank, it is a small regard to the Indian economy."
"While the lending this year represents a significant contribution for the Bank Group, it accounts for less than one percent of India's GDP, and is a modest sum given India's vast need, Zagha said.
The increase in lending was in line with guidance from the G-20, which had, during the summit of November 2008, directed international financial institutions like the World Bank to step up lending to the emerging economies - to sustain their growth and thus help global recovery.
"There are several reasons behind the increase. One is in response to the crisis. In November 2008 if you look at the communique from the G20, you see that the IMF and the World Bank have been guided by the G20 governments to provide funds as needed to emerging economies to (a) help them sustain relevant programmes particularly in infrastructure so need not be disrupted the breakdown in credit market and also to help them ... and strength their financial system," Zagha said.
He further added that the bank would ensure proper utility of the advanced funds.
"We will ensure that we have information disclosure, we have financial system reviewed, we have a variety of safeguards which will ensure proper use of resources," said Zagha. (ANI)