Question : WORLD BANK LENDING TO INDIA



(a) whether the World Bank lending to India has touched $ 4 billion as reported in The Hindustan Times dated February 13, 2007;

(b) if so, the amount of interest paid on such lending amount by the Government;

(c) whether the Government proposes to restrict its lending from World Bank; and

(d) if so, the details thereof?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (PAWAN KUMAR BANSAL)

(a) No, Sir. The World Bank commitment (IBRD Loans and IDA Credits) for new projects to India for the financial year 2006-07 (1st April 06 to 31st March 07) was US $ 2.45 billion.

(b) Interest calculations for International Bank for Reconstruction and Development (IBRD) loans are based on LIBOR plus a variable spread. However, as IBRD loans have a grace period of 5 years, no interest has yet been paid on the commitments during FY 2006-07. No interest is payable for International Development Association (IDA) credits.

(c) No, Sir.

(d) Does not arise.