News: ADB to lend India $1 bn for rural finance project
(TNN 10/09/2006) New Delhi - Manila-based Asian Development Bank is likely to lend $ 1bn (nearly Rs 4,670 crore) to the government to undertake a rural finance project through cooperatives in 2006.
"One specific project we are financing is rural finance through the cooperatives. ADB is providing assistance this year in the amount of 1 bn (about Rs 4500 crore)," said, ADB director general for South Asia, Kunio Senga.
Senga said the loan negotiations are expected sometime in October or November this year. It will be a 20-year-loan and the interest rate is likely to be 40 basis points over the six months Libor (London Inter-bank Offered Rate).
Senga said ADB is essentially aligning with government priorities and one strong priority of the government is rural area development.
"Government has now a national programme to improve the system of cooperatives. With the legal assistance provided by ADB, they have now come up with a good framework," he said.
It is a big project, he said, adding that ADB will continue to work for the improvement of rural areas.
Senga was recently in New Delhi to hold discussions with the finance ministry officials for finalising ADB's Country Partnership Strategy for 2007-09.
ADB's assistance to India is likely to increase from around $ 2.45 bn in 2007 to 2.85 bn in 2009. ADB plans to increase the level of lending to India by expanding assistance programme to cover some relatively-new areas besides core areas of transport, energy, and urban sector operations.
"One specific project we are financing is rural finance through the cooperatives. ADB is providing assistance this year in the amount of 1 bn (about Rs 4500 crore)," said, ADB director general for South Asia, Kunio Senga.
Senga said the loan negotiations are expected sometime in October or November this year. It will be a 20-year-loan and the interest rate is likely to be 40 basis points over the six months Libor (London Inter-bank Offered Rate).
Senga said ADB is essentially aligning with government priorities and one strong priority of the government is rural area development.
"Government has now a national programme to improve the system of cooperatives. With the legal assistance provided by ADB, they have now come up with a good framework," he said.
It is a big project, he said, adding that ADB will continue to work for the improvement of rural areas.
Senga was recently in New Delhi to hold discussions with the finance ministry officials for finalising ADB's Country Partnership Strategy for 2007-09.
ADB's assistance to India is likely to increase from around $ 2.45 bn in 2007 to 2.85 bn in 2009. ADB plans to increase the level of lending to India by expanding assistance programme to cover some relatively-new areas besides core areas of transport, energy, and urban sector operations.
posted by InCar Group Press Room at 10:46
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