ADB okays $2.1bn loan to fight Covid

Tribune News Service

Advertisement

New Delhi, April 28

The Asian Development Bank today announced $1.5 billion loan each to India, the Philippines and Indonesia as part of its $20 billion package to help Asian economies weather the Covid-19 epidemic.

India has already secured a $1 billion commitment from the World Bank to strengthen health services and assist companies and their employees affected by the lockdown.

The loan agreement was signed by Additional Secretary (Fund Bank and ADB), Ministry of Finance, Sameer Kumar Khare and ADB Country Director Kenichi Yokoyama.

In a telephonic conversation with the ADB chief earlier this month, Union Finance Minister Nirmala Sitharaman had sought $2.2 billion in emergency support from the bank.

Apart from agreeing to Sitharaman’s request, Asakawa promised to provide further assistance to India, if needed. The two spoke around the time Prime Minister Narendra Modi discussed with Japanese PM Shinzo Abe the global health and economic challenges emerging out of the pandemic. Japan exerts considerable influence on the ADB.

Moody’s cuts forecast to 0.2%; fitch warns too

New Delhi: Moody’s on Tuesday slashed India growth forecast for 2020 to 0.2 per cent, from 2.5% projected in March. For 2021, it expects growth to rebound to 6.2 per cent. Fitch Ratings also said India’s sovereign rating might come under pressure if there was further deterioration in the country’s fiscal outlook. PTI