India Business Journal - NDB’s $1-bn loan for economic recovery

ECONOMY

NDB’s $1-bn loan for economic recovery

IBJ Bureau
Dec 24, 2020

The government and the New Development Bank (NDB) have signed a loan agreement worth $1 billion to help India’s economic recovery from COVID-19. The loan will support spending on rural infrastructure related to natural resource management and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) Scheme. The loan has a tenure of 30 years, including a five-year grace period. The programme proposes creation of durable rural infrastructure assets and generation of employment opportunities for rural poor, especially migrant workers, who have returned from urban areas and have lost their livelihoods due to the pandemic, a Finance Ministry statement has said.