India got loans worth $2.5B from World Bank to support COVID-19 response: Finance Ministry

The World Bank has so far provided three loans worth USD 2.5 billion to the Government of India to support its response to the Coronavirus pandemic, the Centre has revealed.

In a written reply to a question in Rajya Sabha on Tuesday, Union Minister of State for Finance, Anurag Thakur, said the global lender provided USD 1 billion for health, USD 0.75 billion for social protection, and USD 0.75 billion for economic stimulus, the benefits of which have accrued to all States and Union Territories.

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Breakup of disbursal

Giving more details, Thakur said the first loan relating to health measures worth USD 1 billion was signed on April 3, 2020, to part-finance Centre’s Rs 15,000 crore COVID Health measures to prevent, detect and respond to the threat posed by COVID-19 and strengthen national systems for public health preparedness. As on date, USD 502.5 million has been disbursed under the loan.

The second loan relating to social protection measures worth USD 750 million was signed on May 15 as budgetary support to the Centre for ‘Accelerating India's COVID-19 Social Protection Response Programme’ to support relief measures to beneficiaries under Pradhan Mantri Garib Kalyan Package (PMGKP). This loan has been fully disbursed as on date.

The third loan relating to economic stimulus measures worth USD 750 million was signed on July 6 as budgetary support to the Centre in order to support micro, small, and medium enterprises (MSMEs) under Aatmanirbhar Bharat Package (ANBP). This loan has also been fully disbursed as on date. The Washington D.C.-based lender had earlier said it will support the government’s initiatives to protect the MSME sector by infusing liquidity into the market, strengthening NBFCs and Small Finance Banks (SFB), and by enabling financial innovations.

(PTI Photo)

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