World
Bank offers additional $4.3 billion aid to India
International organization, World Bank has offered additional $4.3 billion aid to India
through 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."
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