World Bank to help India during Lockdown
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The response to the COVID-19 pandemic around the world has required governments to introduce social distancing and lock downs in unprecedented ways. These measures, intended to slow down the spread of the virus have, however, impacted economies and jobs – especially in the informal sector.
India with the world’s largest lockdown has not been an exception to this trend, said Junaid Ahmad, World Bank Country Director in India.
''In this context, cash transfers and food benefits will help the poor and vulnerable access a ‘safety bridge’ towards a time when the economy will start to revive,'' he said.
Of the USD 1 billion commitment, USD 550 million will be financed by a credit from the International Development Association (IDA) – the World Bank’s concessionary lending arm 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 grace period of five years.
The remaining USD 250 million will be made available after June 30, 2020 and would be on standard IBRD terms.
