China-backed AIIB approves $750 million loan for India's Covid-19 response

| Reuters | Jun 17, 2020, 10:26 IST

Beijing-backed Asian Infrastructure Investment Bank (AIIB) has ap... Read More

BEIJING: Beijing-backed Asian Infrastructure Investment Bank (

AIIB

) has approved a loan of $750 million to help India battle the impact of the coronavirus pandemic on vulnerable households, the bank said on Wednesday.

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The project, co-financed by the Asian Development Bank, aims to strengthen economic aid for businesses, expand social safety nets and bolster healthcare.

In May, AIIB approved a $500 million loan to assist India's emergency response to the pandemic. Both loans are part of a $10 billion funding facility the AIIB has announced to help public and private sectors fight the outbreak.

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Top Comment

Tultul Luluai

1552 days ago

This is a multilateral financial institution that augments the function of the older Asian Development Bank, with over 100 nations being its stakeholders, meaning the money is not just China’s. As such, it remains to be seen if Beijing has any additional clout over its lending norms purely because it is based in China. Conversely, even though the ADB is based in The Philippines, it was mired in controversy in 2009 when China arbitrarily objected to Indian project funding request because some of the projects were in Arunachal Pradesh. However, more recently, the ADB approved a US$60m loan for Brahmaputra flood mitigation projects in Assam in 2018.

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