India seeks $5-7 bn aid from World Bank
|Source: The Hitavada Date: 02 Mar 2017 09:15:51|
UNION Finance Minister Arun Jaitley on Wednesday urged the World Bank to grant India $5-7 billion to meet its funding requirements.
“An increase in World Bank’s support is imperative to meet our current requirement of $5-7 billion and for a huge pipeline of projects,” said Jaitley in a statement after meeting its Chief Executive Kristalina I Georgieva here.
India has decided to seek the aid only through the International Bank for Reconstruction and Development (IBRD) of the World Bank and cease the funding from its affiliate -- International Development Agency (IDA).
As the original World Bank institution, IBRD offers loans to middle-income developing countries, while IDA gives loans and grants to the world’s poorest developing countries.
Jaitley also stressed on the need for capital increase in the Bank group.
He also urged the World Bank to lower its interest rate by removing the commitment charges levied on the undisbursed loans.