This is a social security technology fund to protect the country’s urban poor and migrant workers during the coronavirus crisis
New Delhi: The World Bank on Friday approved $1 billion, accelerating India’s COVID-19 social protection response program. This is aimed at supporting the poor and vulnerable affected by the coronavirus pandemic.
The total amount from the World Bank’s end towards emergency COVID-19 response in India now stands to $2 billion. Earlier, a support of $1 billion support was announced to support India’s health sector.
World Bank director, Junaid Ahmad said that in response to the COVID-19 pandemic around the world has required the government across the world to introduce social distancing and in an unprecedented manner.
The measure taken by the authorities to contain the spread of the virus have impacted the economy and jobs, especially in the informal sector, India being no exception with the largest lockdown, Ahmad added.
The amount would be paid in different phases- $550 million would be financed by a credit from the International Development Association (IDA), which is the World Bank’s concessionary lending arm and $200 million would be paid as a loan from the International Bank for reconstruction and development (IBRD) with a maturity of 18.5 years, with a grace period of five years. The remaining $250 million would be credited after June 30 this year.