International Bank for Reconstruction and Development (IBRD) Current Affairs - 2020
Last week the Board of Executive Directors of the World Bank Group has approved a loan of USD 400 million for the rejuvenation of the Ganga River under the NAMAMI Gange Program of the Government of India. The loan approved by the World Bank Group is for strengthening the river basin.
Back in 2015, the World Bank Group has approved USD 1 billion for the First National River Ganga Basin Project. The loan approved for USD 400 million is for the Second National River Ganga Basin Project (SNGRBP).
Financing for the Project
Lending arm of the World Bank Group- International Bank for Reconstruction and Development (IBRD) will be sanctioning the loan amount. USD 381 million is the loan amount that will be sanctioned by IBRD, while USD 19 million is for the IBRD Payment Guarantee for the loan amount. The Guarantee expiry date is 18 years for the date of effectiveness. Including a grace period of 5 years, the loan amount has a maturity of 18.5 years.
Objectives of SNGRBP
- Expand the sewage treatment infrastructure to more cities in the Ganga Basin
- In the long term, the assets related to sewage treatment is operated and maintained effectively
- Help develop State-of-the-art tools for National Mission for Clean Ganga (NMCG) for effective management of the riverfront
- To help control pollution discharge, sewage networks and treatment plants will be set up in select cities across the Ganga Basin
- New infrastructure projects will be developed under the Hybrid Annuity Model (HAM) to ensure long term effectiveness and are well maintained
Tags: International Bank for Reconstruction and Development (IBRD) • Namami Gange Project • World Bank Group
USD 750 Million approved under COVID-19 Emergency Response Program for MSMEs in India by World Bank Group
A USD 750 Million loan was approved for the Micro Small and Medium Enterprises (MSMEs) in India by the World Bank Group. The Approval for the loan amount was given on 30th June 2020 by the Board of Executive Directors of the World Bank Group. As a result of the COVID-19 pandemic, the MSME sector is under severe financial stress due to lack of exports and domestic businesses, loan approval is under Emergency Response Program to ensure increased financial support for the MSMEs in India.
The loan amount will help in addressing the immediate need for liquidity and credit for around 15 lakh (1.5 million) MSMEs in the country. The amount will be disbursed through Small Finance Banks (SFBs) and Non-Banking Financial Companies (NBFCs), which will further help in strengthening the SFBs and NBFCs.
Financing of the Loan Amount
The loan amount will be sanctioned by the lending arm of the World Bank Group- International Bank for Reconstruction and Development (IBRD). Including a grace period of 5 years, the loan amount will be has a maturity of 19 years.
Total of USD 2.75 billion committed to date
With this USD 750 Million loan amount, this is the 3rd loan amount that the World Bank Group has approved under Emergency COVID-19 response to India. The first was USD 1 billion in the month of April 2020 for support to the health care sector, while another USD 1 billion in May 2020 for providing food benefits and cash transfers to the financially weaker sections of the society. This takes the total World Bank Group has committed to India to USD 2.75 billion under the COVID-19 response to India.