WB, India agree on $3.2 bn loan for PSU banks, IIFCL

Last Updated: Monday, August 24, 2009 - 20:04

New Delhi: The World Bank and India have
concluded negotiations for loans worth USD 3.2 billion for
recapitalising state-run banks and funding for the India
Infrastructure Finance Company Ltd, a state-run lender to
infrastructure projects.

The World Bank board would meet in the second-half of
September in Washington to approve a USD 2 billion loan for
the recapitalisation of the PSU banks and another USD 1.2
billion loan for the IIFCL.

The Bank`s External Affairs Advisor, Sudip Mazumdar, said
"negotiations for the two loans have concluded. USD 2 billion
loan for state-run banks and USD 1.2 billion loan for IIFCL
would now be taken up for the board`s approval."

The loans are expected to be formally signed in New Delhi
within a month after the approval from the bank`s board.

Both the loans form part of the USD 14 billion loan
amount earmarked by the World Bank for India for three years,
Mazumdar said.

Also, there are other projects for which negotiations are
going on between India and the World Bank.

Bureau Report

First Published: Monday, August 24, 2009 - 20:04

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