Stimulus module: World Bank approves $ 1 billion to support India’s fight against Covid-19

NEW DELHI: The World Bank on Friday approved the accelerated US $ 1 billion COVID-19 social protection response program to support the country’s efforts to provide social assistance to poor and vulnerable households severely affected by the pandemic.

This brings the total commitment of the World Bank towards the emergency response COVID-19 in India to USD 2 billion.

A billion dollar support was announced last month to support India’s health sector.

The response to the worldwide COVID-19 pandemic has required governments around the world to introduce social distancing and blockades in an unprecedented way, said Junaid Ahmad, Country Director of the World Bank in India in a webinar interaction with the media.

However, these measures, aimed at containing the spread of the virus, have impacted economies and jobs, especially in the informal sector. India with the world’s largest blockade has been no exception to this trend, he said.

Of the USD 1 billion commitment, USD 550 million will be financed by a loan from the International Development Association (IDA): the concessional arm of the World Bank loans and USD 200 million will be a loan from the International Bank for Reconstruction and Development (IBRD) ), with a final maturity of 18.5 years, including a five-year grace period.

The remaining $ 250 million will be available after June 30, 2020.