The Hindu Business Line : ‘World Bank will hike lending if India wants’

New Delhi, Nov. 3 The World Bank President, Mr Robert B. Zoellick, said on Saturday that the Bank was willing to scale up its lending to India if the Government were to seek support for its various ongoing programmes.

“If the Government wants support, I believe we can scale up across various arms. We definitely can scale up IBRD (International Bank for Reconstruction and Development) lending if Government here wants it. I think IFC is definitely going to scale up lending,” Mr Zoellick told a press conference here today before leaving for Dhaka, the final stop on his South Asia visit.

Mr Zoellick noted that the Bank’s Board had provided about $3.7 billion, both IBRD and IDA (International Development Association) assistance put together, during fiscal year ended June 30, 2007.

He also pointed out that International Finance Corporation (IFC), the private sector arm of the World Bank Group, had committed $1 billion last fiscal year to India.

Aid for greater Mumbai

“If we can work together, there is possibility of increasing our assistance here. I had received request in Mumbai that the World Bank should consider $5-6 billion of additional support for metropolitan Mumbai (greater Mumbai) over 10 years”, he said. ]

Mr Zoellick also pointed out that India was a vast country and the resources needed by it would have to come from combination of sources, increasingly from private sector. “But there has to be a right set of government policies and financing foundation. We will share our experiences and learning from various regions of the world with the authorities here,” he added.

To enhance tie-up

In a separate statement, Mr Zoellick said that the World Bank Group would enhance its partnership with India as the Government seeks to guide the country’s rapidly expanding economy towards inclusionary policies.

“India has had striking success,” said Mr Zoellick following two days of meeting with India’s top leadership. “Yet there remains much to be done to address rural and urban poverty and to encourage the development of healthy educated and skilled population that would enable India to achieve inclusive and sustainable growth as a leader in the world economy”.

On Friday, the World Bank and the Government signed loan/credit agreements for $944 million for three projects that sought to support the country’s efforts to revitalise the rural economy and bridge existing skill gaps with vocational training.

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‘World Bank will hike lending if India wants’