ADB disbursed over $1.3-bn loans to India in 2009

India accounted for about 13 per cent of $10.1 billion loans disbursed by the Asian Development Bank (ADB) in 2009, though the actual amount provided to projects during the year declined marginally.

The total amount provided by ADB for over 50 projects in 2009 came down to $1.33 billion from $1.5 billion a year ago, said the ADB's annual report released today.

Total commitments or contracts awarded, however, showed an increase with ADB sanctioning $1.65 billion in loans during the year against $1.15 billion in 2008.

The bulk of the loans were given to project in sectors like power, urban development, highways and irrigation.

The ADB data also showed a substantial decline in the size of loans at risk at 5.7 per cent during 2009, against 9.1 per cent in the previous year.
    
The bank said that as of December 31, 2009, India had 53 ongoing loans.
    
ADB's cumulative lending sanctioned to India at the end of 2009 reached $22 billion, while the actual disbursements were about $13.55 billion.
    
The bank said because of three-fold increase in its capital base to $165 billion last April, it was able to respond quickly to the needs of developing member countries by significantly scaling up assistance, against the backdrop of global economic meltdown.
    
ADB said its overall operations during the year grew 42 per cent from $11.3 billion in 2008 to $16.1 billion in 2009. "Loan disbursements also reached a record high in 2009 at $10.1 billion compared with $8.5 billion in 2008."
    
The bank said that about 81 per cent of its total assistance during 2009 went to five core operational areas of infrastructure, finance, education, environment and regional cooperation. "About 65 per cent of investments were allocated to infrastructure, helping promote inclusive growth by increasing access to important services and economic opportunities."
    
Overall, ADB said Asia is leading the world's economic recovery, with regional growth expected to rebound to over 7 per cent in 2010, from 5.2 per cent last year.
    
"Reduced demand for the region's exports from the major industrial economies, together with muted private consumption in the region, cut growth rates to about 5.2 per cent in 2009, just over half the decade's peak of 9.5 per cent in 2007," the bank said.