India is WB8217;s largest borrower

NEW DELHI, June 7: India has emerged as World Bank8217;s single largest borrower with cumulative loans of more than 44 billion Rs 1,76,000 crore even as uncertainty persists over clearance of about 900 million worth of loans this year in the face of US sanctions.

India is also the largest recipient of credits from the International Development Association IDA, the soft window of World Bank which gives interest free loans at 30 to 40 year maturities to economies with low per capita incomes. World bank lendings to India in fiscal year 1998 July 1997 to June 30, 1998 is also to reach a record 3 billion Rs 12,000 crore. To date, about 1.09 billion Rs 4360 crore in loans and credits have been approved in this fiscal year, World Bank news said.

Loans to the tune of 900 million Rs 3600 crore for projects for fiscal 1998 are still pending for approval. The World Bank governing body which meets every Tuesday and Friday to clear loans has not met so far to approve the remaining projects of India.The US, one of the largest donors to the corpus of WB funds, had threatened to block India8217;s loans under its NPPA laws as a retaliatory measure to her nuclear tests.