150 MILLION DOLLAR LOAN LIKELY FOR REBUILD KERALA
19, May 2019
Prelims level : Environment Mains level : Technology, Economic Development, Bio diversity, Environment, Security and Disaster Management (G3N)
Why in News:
Negotiations are expected for the first tranche of the World Bank’s development policy loan
(DPL) of $150 million for the Rebuild Kerala initiative.
- Since this is not a project specific loan, the money will be issued directly to the State exchequer once it gets approved. The State can use the money for achieving targets set under the Rebuild Kerala initiative. Repayment conditions will be discussed during the negotiations. the State government had identified eight sectors, including water resources, agriculture, roads, and urban affairs, and formulated ‘prior actions’.
- Rebuild Kerala is a Kerala State Government initiative for crowd funding of projects envisaged for rebuilding Kerala following the floods of August 2018.
Development Policy Loans (DPLs):
- Development Policy Loans (DPLs) are programmatic loans that largely fund policy reform, often through rapidly- disbursed budgetary support, rather than project-based physical investments.
- World Bank is one of five institutions created at Breton Woods Conference in 1944.
- The World Bank is an international financial institution that provides loans to developing countries for capital programs.
- It comprises of two institutions:
- International Bank for Reconstruction and Development (IBRD) International Development Association (IDA).
International Bank for Reconstruction and Development (IBRD).
- The International Bank for Reconstruction and Development is an international financial institution that offers loans to middle-income developing countries.
- The IBRD is the first of five member institutions that compose the World Bank Group, and is headquartered in Washington.