World Bank offers additional $4.3 billion aid to India
International organization, World Bank has offered additional $4.3 billion aid to Indiathrough the International Bank for Reconstruction and Development(IBRD) for funding the poverty alleviation initiatives in the country.
The International Bank for Reconstruction and Development is a unit of the World Bank focused on middle-income lending. India, which is one of the biggest client-country for the World Bank, will be able to access the substantial and additional financing from the unit for its programs under the new innovative initiative of the financial body.
The additional funding amounting to $4.3 billion is aimed at keeping the IBRD’s net exposure within the limit of US$ 17.5 billion. The unit has set the limit for a large and highly creditworthy client-country like India.
Under the arrangement, the World Bank will issue special bonds that will be purchased by India in order to offset the additional planned lending. The bank said that the funding will allow India to access long-term, low-interest IBRD finance for development projects that are aimed to improving the lives of the people.
Isabel Guerrero, the Bank’s vice president for South Asia said, “It would have been difficult for the Bank to assist India meaningfully as it tackles the remaining large challenges of lifting some 300 million out of poverty.”