Jaitley urges World Bank to increase IBRD's funding to India

Union Finance Minister Arun Jaitley emphasised the need for increasing the World Bank Portfolio for India at a meeting held today with Kristalina I. Georgieva, CEO, World Bank Group.

Jaitley said that since India has now decided to take assistance from the World Bank only through International Bank for Reconstruction and Development (IBRD) and cease the funding from IDA, an increase in IBRD support is imperative to meet India's current requirement of USD five to seven billion and a huge pipeline of projects. In addition, he also stressed on the need for capital increase in the Bank Group.

Elaborating on the financing issues relating to the World Bank Group, Jaitley highlighted the need for lowering the effective rate of interest on World Bank loans by removing the commitment charges levied on the undisbursed loans; exploring innovative financing options and relaxing the requirement of Sovereign Guarantee for loans to AAA rated organisations.

The World Bank CEO is currently on a two-day official visit to India to understand the long-standing partnership between India and the World Bank, in addition to discussing the Bank's strategy and program in India.

During her visit, Georgieva has held meetings with the Chief Minister of Maharashtra, Reserve Bank of India (RBI) Governor and project authorities of some World Bank Group projects to get a firsthand experience of the implementation of the World Bank projects in India.