ADB APPROVES $1.5 BILLION LOAN TO INDIA TO FIGHT COVID-19
29, Apr 2020
Prelims level : International Policies & Schemes Mains level : GS-II Important International Institutions, Agencies and Fora- their structure, Mandate.
Why in News?
- The Asian Development Bank (ADB) said it has approved $1.5 billion loan to India to help fund its Fight against Coronavirus Pandemic.
About the News:
- The loan has been sanctioned to support immediate priorities such as disease containment and prevention, as well as social protection for the poor and economically vulnerable sections.
- “The quick-disbursing fund is part of a larger package of support that ADB will provide in close coordination with the Government and Other Development Partners.
About Asian Development Bank (ADB):
- It is a regional development bank established on 19 December 1966 headquartered at Manila, Philippines being India as one of the founding member. It is also official United Nations Observer.
- The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries.
- ADB now has 67 members, of which 48 are from within Asia and the Pacific and 19 outside.
- It is modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.
- Japan holds the largest share in ADB with 15.677%, followed by U.S.A (15.567%), China (6.473%), and India (5.812%).
- ADB defines itself as a social development organization that is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
- This is carried out through investments – in the form of loans, grants and information sharing – in infrastructure, health care services, financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas.
- Strategy 2030 sets the course for the Asian Development Bank (ADB) to respond effectively to the region’s changing needs. Under Strategy 2030, ADB will sustain its efforts to eradicate extreme poverty and expand its vision to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
Other recent development between ADB and India:
- ADB and India have signed a loan of $206 million to strengthen urban services in 5 Tamil Nadu cities.
- Asian Development Bank (ADB) has listed its 10-year masala bonds worth Rs 850 crore on the global debt listing platform of India INX.
- Asian Development Bank (ADB) had prepared a Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC).