New Delhi: The Asian Development Bank (ADB) said Tuesday it has approved USD 1.5 billion (about Rs 11,400 crore) loan to India. This fund will be used to fight against coronavirus pandemic.
The loan has been sanctioned with a view to support immediate priorities. Among them are disease containment and prevention. The funds will be used also for social protection of the poor and economically vulnerable sections.
The organisation is fully committed to supporting the Indian government in its response to this unprecedented challenge. It will support India’s efforts to fight COVID-19, said ADB president Masatsugu Asakawa.
“The quick-disbursing fund is part of a larger package of support. ADB will provide that package in close coordination with the government and other development partners. We are determined to support India’s COVID-19 response programmes. We will ensure that they provide effective support to the people of India,” Asakawa said in a statement.
The Finance Ministry said the loan agreement has been signed. The signatories to the loan agreement were Sameer Kumar Khare, Additional Secretary in the Department of Economic Affairs and Kenichi Yokoyama, country director, ADB, in India.
The Manila-headquartered multilateral agency described its role. It said its COVID-19 Active Response and Expenditure Support (CARES) programme will contribute directly to the improvement of health facilities. The funds will provide social protection for more than 800 million people. These include families below poverty line, farmers, health care workers, women, senior citizens and others.
The ‘CARES Program’ is funded through the COVID-19 pandemic response option (CPRO) under ADB’s Countercyclical Support Facility. CPRO was established as part of ADB’s USD 20 billion expanded assistance for developing member countries’ COVID-19 response. The programme was announced April 13.
“India has taken proactive and decisive measures to contain COVID-19 to protect lives. It has implemented of social distancing, community quarantine, and testing and tracking,” the ADM said.
Insurance coverage for all types of health workers engaged in the COVID-19 response is also included. Around 65 per cent of the package is in the form of direct social assistance and protection to the poor.
PTI
