750 million USD loan approved by AIIB to India

The Asian Infrastructure Investment Bank (AIIB), a multilateral agency led by China, has approved a $750-million (over Rs 5,700-crore) loan to India to help the government strengthen its response to the adverse impacts of the Covid-19.

Highlights

• 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 AIIB amounts to 3.6 billion USD.
• This includes the recent emergency response of the bank that amounted to 500 million USD.
• The loan allocated is the second for the country under AIIB COVID-19 Crisis Recovery Facility (CRF).

Asian Infrastructure Investment Bank

• The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia.
• It is established by the AIIB Articles of Agreement (entered into force 25th December 2015) which is a multilateral treaty.
• Headquarters: Beijing, China
• Members:102 members.
• India joined AIIB in 2016 as a regional member of the Bank.
• Further, fourteen of the G-20 nations are AIIB members including France, Germany, Italy and the United Kingdom.
• China is the largest shareholder in AIIB with a 26.06% voting power, followed by India with a 7.62% voting power.

UPSC