Asian Development Bank To Invest US$6 Billion in India
May 8 – During its Board of Governors meeting in Delhi last week, the Asian Development Bank (ADB) announced that it will provide a US$6 billion loan to India over the next three years. Furthermore, it will maintain its annual lending of US$10 billion over the next three years to its member states despite currently facing resource challenges and generating only low returns from its investments.
“Our idea is ADB will maintain its lending level to India, approximately $2 billion over next three years. We are now working on the country partnership strategy and we are planning to maintain the level of lending to India,” said ADB President Takehiko Nakao during the concluding day of the 46th annual meeting.
The ADB extended a US$2.4 billion loan to India last year across numerous sectors of the national economy, including the transport, energy, commerce, industry, trade and finance sectors. India is currently the largest borrower from the Manila-based multilateral lender.
Speaking on the ADB’s current resource challenge, Mr. Nakao stated that the issue will require special care.
“We will look at all options for ensuring that our lending level remains adequate. Financial safety and return is the key objective while making investment,” he said.
Mr. Nakao further stated that augmenting the capital of the bank is a very difficult issue.
“At this point I want to mention what kind of objections we are getting to maintain the level of lending. I don’t want to specify what kind of idea we have at this moment,” he said.
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