World Bank loan to India to be $9.3 billion by June

The World Bank said Wednesday its total loan support to India will reach $9.3 billion by the end of the bank’s financial year in June. The World Bank follows the July-June financial year. “The total lending this year included $2.6 billion as interest-free credits from the International Development Association (IDA) and $6.7 billion in the form of long term, low interest loans from International Bank of Reconstruction and Development (IBRD),” said a Bank statement. About $3 billion of the financial aid was used in the government’s response to the global financial crisis, including capital infusion of public sector banks. Help for infrastructure development accounted for about 21 percent of the Bank’s total commitments to India this year. “While our annual lending this year represents a significant contribution for the Bank Group, it accounts for less than one percent of India’s gross domestic product, and is a modest sum given India’s vast needs,” said Roberto Zagha, World Bank country director in India. About 11 percent was directed at helping the government improve the quality of public services like schooling, irrigation, drinking water and sanitation. The government’s flagship primary education programme, the Sarva Shikhsa Abhiyan, was given $750 million in assistance taking the total lending to the project at $1.1 billion over the years.