World Bank gives loan of $300 million to Indonesian govt for financial reforms

In a bid to provide budget support, the World Bank has approved a $300 million loan for Indonesia on March 23 to assist the nation in financial sector reforms. According to international reports, the bank said in a statement that the loan will provide budget support for the reform agenda of Indonesia by expanding its financial market outreach, allowing more focus on technology, and prompting sustainable finance practice.

The approval by the World Bank of the funds came after the Indonesian government announced that the 2020 budget deficit might widen beyond its current forecast of 2.5 per cent of gross domestic product amid the pressures posed by the coronavirus outbreak. Meanwhile, the World Bank has also increased the COVID-19 response to $14 billion to help sustain the economies and protect jobs. 

It said in the statement, “IFC, a member of the World Bank Group, will increase its COVID-19 related financing availability to $8 billion as part of the $14 billion package, up from an earlier $6 billion, to support private companies and their employees hurt by the economic downturn caused by the spread of COVID-19.”

Read - World Bank Increases COVID-19 Response Fund To USD14 Billion

Read - World Bank Announces $12 Billion Financial Package For Countries Battling Coronavirus

$2 trillion package failed to advance in US

While World Bank is doing its part to protect the global economy, the United States witnessed a setback with Democrats rejecting a trillion-dollar emergency package proposed by Senate Republicans on March 22. What Senate leader Mitch McConnell has called a “game of chicken” is Congress rejecting a trillion-dollar proposal by the Senate to rescue the struggling economy of the United States on March 22. As the countries stepping up their precautionary measures to lessen the impact of the deadly coronavirus outbreak on their economy, Senate had tried to persuade the House of Representatives to pass the bill up to $2 trillion in the funding of the American families along with thousands of the shuttering businesses and critically under-equipped hospitals. 

However, Democrats said that the Republican proposal had sufficiently failed to protect millions of American workers during the crisis of the pandemic. The Republicans also lacked support in the Congress with at least five of their party being unable to attend the session due to quarantine-related issues. Despite the intense negotiations between both parties, the bill fell far short The Senate roll call was reportedly 47-47 and it needed at least 60 votes to advance. Moreover, the shock Senate result heaps major pressure on the Congress to come together and give a green signal to federal government intervention as soon as possible, which will also likely to be the largest of its kind in the history of the US. 

Read - Amid Coronavirus Scare, World Bank,IMF To Hold Annual Spring Meetings In 'virtual Format'

Read - IMF, World Bank Funds Ready To Fight Virus Outbreak: Spokesman

Image credit: AP