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India, World Bank sign $4.2 bn loan deals

Assistance will be used to for infra projects, recapitalsation of PSU banks - PNB may seek Rs 3,000 crore of World Bank fund - Independent office to evaluate govt schemes soon: Montek - Not Bretton Woods II - Shankar Acharya: A month to remember?">Shankar Acharya: A month to remember? - "No plan to induct strategic investors in govt banks" - Re at 1-year high as RBI signals rate increase India today signed agreements with the World Bank for $4.2 billion (around Rs 20,000 crore) credit to support the country"s infrastructure projects and also for recapitalising the public sector banks. State-run PowerGrid Corp of India, India Infrastructure Finance Company Ltd (IIFCL) signed pacts for $1 billion and $1.195 billion respectively. The funding to PowerGrid will be used for Fifth Power System Development Project, which aims to strengthen the transmission system, a World Bank statement said. The Centre signed the agreement for $2 billion to recapitalise the state-run banks, which require capital infusion during 2009-2011 to maintain credit expansion and to help contain adverse effects of global slowdown. The loans from International Bank for Reconstruction and Development — an arm of the World Bank — for the banking sector and PowerGrid have have a maturity period of 30 years, while that to IIFCL has a 28-year maturity, with some grace periods. "This (the funding) will provide capital funds to the public sector banks over the next two years to enable them meet the credit requirement of the economy, including the agriculture sector, MSME sector, weaker sections, etc," it said.

Kwik Quid commented:

Hoping such loan will give good outcome to economy of nation used in such way. You have shared a good information.Thanks for such post.

21.11.2011

Payday Advances commented:

wow..its the great news and I think this loan will be veryu helpful for the growth of indian peoples hope this loan will reduce the problem of poverty .thanks for such a useful and informative post

07.03.2012


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