The Asian Development Bank (ADB) has issued a $1.5 billion loan to India to assist in coping with the Covid-19 pandemic. The loan comes as support to the Indian government following an earlier assurance from ADB of a $2.2 billion (about Rs 16,500 crore) support against the Covid-19 pandemic.
Key Features of the Loan
The loan is primarily targeted at assisting the Central government in immediate priorities such as:
• Covid-19 containment and prevention.
• Provisioning for social protection of poor and economically vulnerable sections of society.
The support has been extended under ADB’s Covid-19 Active Response and Expenditure Support (CARES) Program.
Covid-19 Active Response and Expenditure Support (CARES) Program
The CARES Program backs the government’s stimulus package aimed at broadening existing social assistance programs, augmenting resources for Covid-19 prevention and control, and protecting productive sectors and workers from the economic downturn.
The funding for the CARES Program is sourced from the Covid-19 Pandemic Response Option (CPRO) under ADB’s Countercyclical Support Facility. This initiative is a part of a $20 billion package approved by ADB on April 13th, 2020 with an aim to help its developing member countries combat Covid-19.
The CARES Program will be implemented through a country engagement framework centred on policy dialogue and monitoring of the government’s countercyclical strategy and measures.
About Asian Development Bank (ADB)
Established on 19th December 1966, the ADB has now 68 members, out of which 49 are from Asia. As of 31st December 2019, ADB’s five largest shareholders are Japan and the United States (each with 15.6% shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
The bank is devoted to promoting social and economic development in Asia. It endeavours to create a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty. The ADB has its headquarters in Manila, Philippines.
