Today 17 June, 2020, the Asian Infrastructure Investment Bank (AIIB) approved 750 million US Dollar loan to India. The fund granted is to be used by the Gvernment of India to strengthen battle against the impact of COVID-19 on the poor and vulnerable.
The aid was cofinanced by the Asian Development Bank (ADB). The funds are to be used for improving informal sector, safety nets for the needy and strengthen heath care system of the country.
India and AIIB
The total sovereign loans to India that were already approved by the Asian Infrastructure Investment Bank amounts to 3.6 billion USD. This includes the recent emergency response of the bank that amounted to $500 million.
The loan allocated is the second for the country under AIIB COVID-19 Crisis Recovery Facility (CRF).
Crisis Recovery Facility
The Asian Infrastructure Investment Bank does not have an exclusive policy based financing. The bank is currently extending its support to its members through projects under Crisis Recovery Facility (CRF) that are cofinanced either with the World Bank or Asian Development Bank (ADB).
The Crisis Recovery Facility was set up with an initial investment of $5 billion. Later it was doubled to $10 billion in order to make sure the funds are available to the member countries to fulfill their financial, economic and public health pressures.
The Asian Infrastructure Investment Bank has in total approved $4.05 billion under Crisis Recovery Facility. Of this, China received $355 million, $750 million to Indonesia and Philippines each, $250 million to Bangladesh and $500 million to Pakistan. AIIB approved 750 million USD loan to India AIIB approved 750 million USD loan to India