Stimulus goes on. New Players.
September 23, 2009
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World Bank Provides US$4.3 Billion to Support India’s Economic Stimulus, Infrastructure Investments
World Bank Provides US$4.3 Billion to Support India’s Economic Stimulus, Infrastructure Investments
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22323596~pagePK:64257043~piPK:437376~theSitePK:4607,00.html
Press Release No:2010/073/SAR
Contacts:
In Delhi
Sudip Mozumder
(91 11) 2461-7241
smozumder@worldbank.org
In Washington: Erik Nora (202) 458 4735
enora@worldbank.org
WASHINGTON, September 22, 2009 ─ The World Bank today approved four projects worth US$4.3 billion to India, designed to support the Government’s infrastructure agenda and bolster its economic stimulus program.
After a period of high economic growth — which reached 9.7 percent in 2006-07 — the onset of the global financial crisis in 2008 saw India’s growth rate fall to about 5-6 percent in the fourth quarter of 2008-09. Although there is uncertainty about the pace of the economic recovery, current trends suggest that a growth rate of between 5.5 and 6.5 percent for 2009-10 is realistic.
“This is a crucial time to support India,” said Roberto Zagha, World Bank Country Director for India. “While the worst of the crisis seems to be behind us, doubts linger about the strength of the comeback, partly because the strength of the global recovery is uncertain. Today’s support will help maintain credit growth and continued infrastructure investments. Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth.”
The US$2 billion Banking Sector Support Loan will provide budgetary support to the Government of India, helping it maintain its broad economic stimulus program by enhancing the capital of select public sector banks.
My question is who is lending to who?