Washington, Mar 16 (BSS/PTI) The World Bank yesterday announced USD 4.3 billion financial aid to India through a new innovative and flexible financing arrangement to help the country fight poverty.
This arrangement, while facilitating a USD 4.3 billion
increase in support to India, is designed to maintain
International Bank for Reconstruction and Development's (IBRD) -
which is its lending arm - net exposure within the limit of USD
17.5 billion established by it.
In a statement, the World Bank said the new arrangement will
allow for special bonds to be issued by the World Bank and
purchased by India, to offset additional planned lending.
This will enable India to continue accessing long-term, low-
interest IBRD finance for development projects aimed at improving
the lives of its people, one third of whom are yet to make their
way out of poverty.
"Without taking this action, 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," said WB vice president for South Asia Isabel Guerrero.
"This new arrangement will work towards supporting India's
development needs, showing the Bank can be innovative, flexible
and responsive to the differentiated needs of our client
countries," she said in a statement.
The Bank said like other emerging economies, India is faced
with the challenge of removing bottlenecks in infrastructure and
human skill development that can constrain its ability to sustain
non-inflationary, rapid and inclusive growth.
In line with its aim to support India's development goals,
the World Bank has nearly 80 active projects in India, with
several large projects in the critical area of infrastructure.