In­dia largest re­cip­i­ent of World Bank loans in 2009-2010

The Pak Banker - - Front Page -

NEW DELHI: In­dia was the World Bank's favourite last fis­cal when it came to ex­tend­ing fi­nan­cial aid in the form of loans, both among de­vel­op­ing coun­tries and the world's poor­est na­tions.

The World Bank, through its lend­ing arms IBRD and IDA, com­mit­ted USD 9.3 bil­lion in fi­nan­cial as­sis­tance to In­dia in the 2009-10 fis­cal, more than the aid com­mit­ted by the US and the Euro­pean Union.

The In­ter­na­tional Bank for Re­con­struc­tion and Devel­op­ment (IBRD) com­mit­ted USD 6.7 bil­lion, or 15.1 per cent of its to­tal lend­ing in the fis­cal, to In­dia, ac­cord­ing to govern­ment of­fi­cials. In com­par­i­son, the sec­ond high­est re­cip­i­ent, Mex­ico, got USD 6.4 bil­lion.

Next in line were South Africa ( USD 3.8 bil­lion), Brazil (USD 3.7 bil­lion) and Turkey (USD 3.0 bil­lion). IBRD serves mid­dle-in­come coun­tries with in­vest­ment and ad­vi­sory ser­vices.

The World Bank's con­ces­sion­ary lend­ing arm, the In­ter­na­tional Devel­op­ment As­so­ci­a­tion (IDA), which helps the world's poor­est coun­tries, com­mit­ted 17.7 per cent of its to­tal aid, amount­ing to USD 2.6 bil­lion, to In­dia in 2009-10.

In con­trast, the IDA com­mit­ted USD 1.4 bil­lion to Viet­nam and USD 0.9 bil­lion each to Tan­za­nia, Ethiopia and Nige­ria.

It aims to re­duce poverty by pro­vid­ing in­ter­est-free credit and grants for pro­grammes that boost eco­nomic growth, re­duce in­equal­i­ties and im­prove peo­ple's liv­ing con­di­tions.

Even in terms of ac­tual dis­burse­ment, In­dia was the largest re­cip­i­ent of World Bank fi­nan­cial as­sis­tance last fis­cal, with a to­tal of USD 4.7 bil­lion --IBRD (3.4 bil­lion) and IDA (1.3 bil­lion) --be­ing re­leased, of­fi­cials in­formed.

The coun­try was also the largest re­cip­i­ent of as­sis­tance from other ex­ter­nal fund­ing agen­cies like the In­ter­na­tional Fund for Agri­cul­tural Devel­op­ment (IFAD) and the UK's Depart­ment for In­ter­na­tional Devel­op­ment (DFID).

How­ever, in view of shrink­ing land re­sources, Delhi govern­ment is con­sid­er­ing set­ting up of a 'land bank' which will cater to fu­ture re­quire­ments of the in­dus­trial sec­tor in the na­tional cap­i­tal.

Ini­tially, the 'land bank' is likely to com­prise va­cant land acquired by the city govern­ment or its nom­i­nated agen­cies for de­vel­op­ing in­dus­trial in­fra­struc­ture.

"Cre­at­ing land bank is sig­nif­i­cant to a plan for in­fra­struc­ture and in­dus­trial as­set devel­op­ment in a bal­anced man­ner," said a se­nior of­fi­cial.

The land bank may also com­prise plots avail­able with the govern­ment for auc­tion or land acquired in ur­ban ar­eas for rede­vel­op­ment and set­ting up of pub­lic fa­cil­i­ties, the of­fi­cial said. The in­dus­trial pol­icy of Delhi, which was un­veiled by chief min­is­ter Sheila Dik­shit ear­lier this month, also favoured cre­ation of a land bank for fu­ture needs of in­dus­trial devel­op­ment in the city.

WASHINGTON: Jean-Pierre Landau, left, deputy gover­nor of the Bank of France, talks with Mark Car­ney of the Bank of Canada, on the ve­randa of the Jack­son Lake Lodge, dur­ing a break from the morn­ing ses­sion of the an­nual Fed­eral Re­serve con­fer­ence. -Afp

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