By IANS,
Washington : The World Bank Group committed US$6.6 billion in fiscal year ended June 30 to South Asia, where India is the largest borrower, much of it focused on helping the countries there cope with the impact of the global economic crisis.
Key to the Bank’s strategy in South Asia is scaling up existing programmes that are delivering results, the group said Thursday.
In India, a $400 million loan was extended to improve access to finance for India”s Small and Medium Enterprises (SMEs) which face serious challenges in accessing adequate and timely financing on competitive terms. Within South Asia, India was the largest borrower from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), accounting for $2,242 million.
Pakistan was the second largest borrower with US$1,609 million (IDA), followed by Bangladesh at $1,096 million (IDA), the Bank said.
The Bank also provided $500 million to support the Government of Pakistan’s programme to regain and maintain economic stability and steer the economy back onto a higher growth path.
With an increase of US$1.1 billion over the previous year, the Bank invested in 89 projects to promote economic growth, fight poverty, and assist private businesses, including nearly US$2 billion in infrastructure financing, a critical sector to provide the foundation for rapid recovery from the crisis and job creation.
“South Asian countries have been hard hit by a series of crises”food, then the fuel crisis, followed by the global financial crisis,” said Isabel M. Guerrero, World Bank Vice President for South Asia.
“In response to the impact of these successive crises much of our work has been refocused to provide rapid financial assistance and policy advice to reverse the slowdown in growth and investment and to protect the poor and most vulnerable people.”
Globally, the World Bank Group committed US$58.8 billion in fiscal year 2009, up 54 percent from fiscal year 2008.
Commitments from IBRD, which provides financing, risk management products, and other financial services to countries, rose sharply in FY09 to $32.9 billion for 126 operations, from US$13.5 billion the previous year.
Commitments from IDA, which provides interest-free loans and grants to the world’s 79 poorest countries, totalled a record US$14 billion in FY09, up 25 percent from US$11.2 billion in FY08.
The International Finance Corporation (IFC), which makes equity investments, and provides loans, guarantees, and advisory services to private-sector business, committed close to US$1.2 billion in 47 projects in FY09 in South Asia.