By: Ranjini K
September 21 2020
The Indian government has borrowed a $750 million loan from the Asian Infrastructure Investment Bank(AIIB) for COVID-19 response.
The Indian government has borrowed a $750 million loan from the Asian Infrastructure Investment Bank(AIIB) for COVID-19 response.On June 19, 2020, the Indian government signed an agreement with the AIIB for a $750 million loan under the COVID-19 Active Response and Expenditure Support Programme to strengthen the pandemic's adverse effect. AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. China is the largest shareholder of the Bank, and it is headquartered in Beijing. Earlier, an amount of $500 million in loans was sanctioned for the COVID-19 Emergency Response and Health Systems Preparedness Project. The second amount from the Bank is under the COVID-19 Crisis Recovery Facility(CRF), which was established as part of the coordinated international response to counter the pandemic, to support AIIB members' urgent economic, financial, and public health needs. A total amount of $2.250 would be financed by the Asian Infrastructure Investment Bank(AIIB) and the Asian Development Bank(ADB). AIIB would provide $750 million, and the Asian Development Bank will provide $ 1.5 billion.