ADB Assures Covid-19 Support Package

• 11 Apr 2020

Why in News

The Asian Development Bank (ADB) has assured the Ministry of Finance of USD 2.2 billion (about Rs 16,500 crore) support to India in its fight against the Covid-19 pandemic.

• On 18^th March, 2020, ADB announced an initial package of approximately USD 6.5 billion to address the immediate needs of its developing member countries, including India, as they respond to the Covid-19 pandemic.
• The World Bank has approved a $1-billion assistance to help India prevent, detect and respond to the outbreak, and strengthen its public health preparedness.

Key Points

• Background: Weakening global economic growth is causing
  
  • Disruptions in India’s trade and manufacturing supply chains,
  • Slowdown in tourism and other economic activities,
  • Strain on the large number of micro, small, and medium-sized enterprises,
  • A negative impact on the livelihood of formal and informal labourers across the country, etc.
• ADB praised efforts of the Government: ADB praised the Indian government’s decisive response to the pandemic, including
  
  • A national health emergency program.
  • Tax and other relief measures provided to businesses.
  • Rs 1.7 lakh crore economic relief package (Pradhan Mantri Garib Kalyan Yojana), which provides immediate income and consumption support to the poor, women, and workers affected by the three-week nationwide lockdown.
• ADB’s Support to India
  
  • It is now preparing USD 2.2 billion in immediate assistance in response to Covid-19 to the health sector to help alleviate the economic impact of the pandemic on the poor.
  • ADB is also engaged with the private sector to meet its financing needs during this period.
  • It is ready to provide further financial assistance and policy advice whenever the situation warrants.
  • ADB is also planning to consider all financing options available to meet India’s needs, to facilitate swift disbursement of ADB funds including emergency assistance, policy-based loans, and budget support.

Asian Development Bank

• ADB is a regional development bank established on 19^th December 1966.
• ADB now has 68 members, 49 from within Asia.
• As of 31 December 2019, ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
• It aims to promote social and economic development in Asia.
• ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
• ADB is headquartered in Manila, Philippines.

Source: IE