[ad_1]
World Bank Country Director Junaid Ahmad did not elaborate on the size of loans to MSMEs and said they were being negotiated. However, he praised the government’s approach, focusing on health care, social protection and economic stabilization.
Read our coronavirus blog live for the latest news and updates.
“India’s assistance is the largest among emerging markets … The government has been very hands-on in phases. It needs to keep the dust dry … and come in later if necessary,” he said.
The support of the multilateral agency for social protection will be financed in two phases: an allocation of $ 750 million before the end of June and a second tranche of $ 250 million by June 2021.
More about Covid-19
In the first phase, the financing is intended to support Pradhan Mantri Garib Kalyan Yojana, will help expand the public distribution system and the direct transfer of benefits, in addition to supporting other initiatives, such as social protection for workers participating in the fight against Covid19.
“This $ 1 billion will help support the government greatly. It is the Indian government that is leading the spending, we are just following it. Other development partners will also support this program, ”said Junaid Ahmad, country director of the World Bank in India.
Coronavirus outbreak: full coverage
The assistance is intended to address the problems facing the urban poor and migrants, deal with portability of benefits, and the agency will work with the Center and the states, he added.
One of the elements would be to create an urban social protection platform, using Aadhaar, to allow the release of social benefits and cash transfers easily. This is expected to help create portability of benefits, such as the use of ration cards anywhere in the country.
In addition, an integrated platform for social protection, which may not link all 460 transfers, but is expected to rework the processes and targeting of companies so that beneficiaries do not have to apply again and again for different social transfer programs said Shrayana Bhattacharya, chief economic officer at the World Bank.
Of the $ 1 billion commitment to social protection, $ 550 million will be financed by a loan from the agency’s International Development Association and $ 200 million will be a loan from the International Bank for Reconstruction and Development (IBRD), with a maturity 18-year-and-a-half year end including a five-year grace period.
Video: World Bank to make $ 1 billion loan for social protection
.
[ad_2]
