Govt seeks US$5.2bn world bank loan to fight global crisis: report

The Government has asked for a loan of US$5.2bn from World Bank for two years to June 2010 to fight an economic slowdown, acting finance minister Pranab Mukherjee was quoted as saying. The US$5.2bn loan will be over and above the average loan assistance of around US$1.5bn to US$2bn a year, Mukherjee stated. The Government has sought US$3.4bn for the recapitalization of state-run banks and National Housing Bank, US$1bn for Power Grid Corp. of India Ltd., US$600mn for India Infrastructure Finance Co. and US$200mn for financing small and medium companies, the minister added. The government of India has borrowed Rs2.56 trillion from foreign Governments as of Jan. 31, and the interest payable is Rs43.13bn, Mukherjee said.