World Bank Announces Another USD 1 Billion Support To India

NEW DELHI: The World Bank on Friday announced a $1 billion support to accelerate India’s social assistance to the most vulnerable households across the country. With increased cash and food benefits, the program will ensure a safety net for the poorest during this crisis.

A USD 1 billion support was announced last month to support India's health sector.

World Bank’s Country Director for India, Junaid Ahmad, said, “The response to the COVID-19 pandemic around the world has required governments to introduce social distancing and lockdowns in unprecedented ways.”

“These measures, intended to slow down the spread of the virus have, however, impacted economies and jobs – especially in the informal sector.

India with the world’s largest lockdown has not been an exception to this trend. In this context, cash transfers and food benefits will help the poor and vulnerable access a ‘safety bridge’ towards a time when the economy will start to revive,” he adds in a webinar interaction with the media.

The World Bank will partner with the government in three areas – health, social protection, and Micro, Small & Medium Enterprises, Ahmed said.

The World Bank said that the $1 billion will be funded in two phases – “an immediate allocation of $750 million for the fiscal year 2020 and a $250 million second tranche that will be made available for the fiscal year 2021”.

Of the USD 1 billion commitment, USD 550 million will be financed by a credit from the International Development Association (IDA) – the World Bank's concessionary lending arm and USD 200 million will be a loan from the International Bank for Reconstruction and Development (IBRD), with a final maturity of 18.5 years including a grace period of five years.

The remaining USD 250 million will be made available after June 30, 2020.

Also Read: Coronavirus Is Here To Stay, For A Long Time: WHO Chief