ID :
30516
Sun, 11/16/2008 - 07:15
Auther :
Shortlink :
http://m.oananews.org//node/30516
The shortlink copeid
WB to give USD 100 bn loan to developing countries
V S Chandrasekar
Washington, Nov 15 (PTI) The World Bank has said it will
give a loan of USD 100 billion this year to developing nations
and India can draw an additional USD three billion annually
for three years.
Disclosing this, Planning Commission Deputy Chairman
Montek Singh Ahluwalia told reporters here that "some
concrete response has come and we told them they need to go
further".
The World Bank has already committed USD three billion
to India this year.
Ahluwalia cited this as being the World Bank's response
in the context of increasing the flow of resources to help
developing countries by the Brettonwoods institutions.
The International Monetary Fund (I.M.F.), he said, has
also offered extension of low-condition facility called the
liquidity facility which can go up to five times. Should India
decide to use the facility, it would be able to draw USD 300
million.
"It is an element of confidence in India. The World Bank
assistance in areas like infrastructure projects is good to be
used as contra-cyclical measures," Ahluwalia said.
On the impact of global downturn on the Indian economy's
growth rate, he said it was quite clear that the economic
crisis was having some impact. In fact, this year the growth
rate is expected to be between 7 and 7.9 percent against the
rate of 9 percent recorded in the last four years.
To a question whether the Prime Minister, Finance
Minister and he himself were making contradictory statements
on the impact of the global downturn on India, Ahluwalia said
there would not be a contraction of the economy though there
would be a slower growth.
"It will not be a contraction. It is true that all of
us have (noted that) the fundamentals of the economy are
strong. Had the economic crisis not not come the growth would
have gone on. Indian bank is regulated, capital adequacy in
banks is quite good. We don't have to worry. While the rest of
the world is talking about recession, we don't have to worry
about recession," he said.
The Planning Commission deputy chief said there would be
a slowdown. From an estimate of 8 to 8.5 percent growth given
by the Rangarajan Committee, it may be between 7.5 percent
and 8 percent.
"It is a realistic assessment of the external condition,"
he added.
Washington, Nov 15 (PTI) The World Bank has said it will
give a loan of USD 100 billion this year to developing nations
and India can draw an additional USD three billion annually
for three years.
Disclosing this, Planning Commission Deputy Chairman
Montek Singh Ahluwalia told reporters here that "some
concrete response has come and we told them they need to go
further".
The World Bank has already committed USD three billion
to India this year.
Ahluwalia cited this as being the World Bank's response
in the context of increasing the flow of resources to help
developing countries by the Brettonwoods institutions.
The International Monetary Fund (I.M.F.), he said, has
also offered extension of low-condition facility called the
liquidity facility which can go up to five times. Should India
decide to use the facility, it would be able to draw USD 300
million.
"It is an element of confidence in India. The World Bank
assistance in areas like infrastructure projects is good to be
used as contra-cyclical measures," Ahluwalia said.
On the impact of global downturn on the Indian economy's
growth rate, he said it was quite clear that the economic
crisis was having some impact. In fact, this year the growth
rate is expected to be between 7 and 7.9 percent against the
rate of 9 percent recorded in the last four years.
To a question whether the Prime Minister, Finance
Minister and he himself were making contradictory statements
on the impact of the global downturn on India, Ahluwalia said
there would not be a contraction of the economy though there
would be a slower growth.
"It will not be a contraction. It is true that all of
us have (noted that) the fundamentals of the economy are
strong. Had the economic crisis not not come the growth would
have gone on. Indian bank is regulated, capital adequacy in
banks is quite good. We don't have to worry. While the rest of
the world is talking about recession, we don't have to worry
about recession," he said.
The Planning Commission deputy chief said there would be
a slowdown. From an estimate of 8 to 8.5 percent growth given
by the Rangarajan Committee, it may be between 7.5 percent
and 8 percent.
"It is a realistic assessment of the external condition,"
he added.
