Chinas AIIB clears $750-mn loan to India for COVID-19

The loan will help government strengthen its response to the adverse impacts of the pandemic.

Beijing headquartered Asian Infrastructure Investment Bank (AIIB) approved a $750-million loan to India to help the government strengthen its response to the adverse impacts of the coronavirus pandemic.

Co-financed by the Asian Development Bank, the budgetary support will go toward bolstering economic aid for businesses, including for the informal sector, expanding social safety nets for the needy, and strengthening the country's health care systems, the AIIB said in a statement.

The government is reportedly tapping global bodies such as the World Bank, ADB, New Development Bank and others to access loans to not just bolster the health infrastructure but also support MSMEs.

In May, AIIB approved a $500-million loan to assist India's emergency response to the pandemic. The current loan will be the second for India under Asian Infrastructure Investment Bank's COVID-19 Crisis Recovery Facility.